Who Provides Short-Term Disability Insurance?

Posted by shahinc on February 13th, 2020

Short term disability insurance can be provided in 2 ways:

1. Through your employer as a benefit - group insurance

Usually, the short term disability is covered through the employment company as benefits with group insurance policies. In most cases, the short term disability insurance quote is received as group coverage by the employment company. The amount of the benefits and the price of the insurance policy depend on the type of job the employee does, their working hours, the salary they receive, as well as the employment period.

The main thing to remember about short term disability insurance policies provided through an employer is that the benefits or insurance stop when the employment stops, so it’s tied to the company, not to the individual.

2. Privately – individual short term disability insurance

When the person doesn’t receive short term disability insurance through their employer, they can opt for an individual (or private) short term disability insurance which can be purchased separately from the employer or as a way to get additional coverage for yourself. In these cases, it’s up to the individual to find the insurance provider and decide about the quotes, type of policy and the specific conditions of the short term disability insurance policy.

The main difference between the individual short term disability insurance policy and the one provided by an employer is that the insurance policy doesn’t stop when the employment does and it’s yours as long as you keep paying the premiums for it.