What differentiates long and short term disability benefits?

On Behalf of | Apr 30, 2020 | SSDI

Florida workers should have some type of disability insurance. It can keep you safe in the event that something happens which renders you incapable of working.

Today we will look at two types of disability insurance. This includes long and short term disability insurance. Each covers different possibilities. Each has different price points. Each suits different people depending on their individual needs.

The cost of disability plans

The Hartford looks at both long and short term disability benefits. Let us look at costs first. They note that first that short-term disability benefits are often expensive. This is even more true for individuals buying a plan on their own. But many companies offer a group plan as part of the benefits for working with them. A group plan offers protection in the event of a short-term disability. Long-term disability is more expensive because it covers longer periods of time. The longer the disability lasts, the higher the premium.

The coverage of disability plans

Now, let us look at the duration of these insurance types. Short-term disability coverage often lasts in periods of three to six months. It can last up to a year. By comparison, long-term disability coverage lasts two years minimum in most situations. They can also last five to ten years. They may last until you are 65 years of age. Finally, they can last a lifetime. The waiting period before benefits kicks in is often longer for long-term benefits. You must wait at least 90 days before collecting benefits.

Applying for disability benefits is often an unwanted hassle on top of existing stress. Understanding plans and how they work well in advance can help cut down on much of that confusion.