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Essay on Short and Long Term Disability; A Comparison
The employees are three times more likely to become disable during their work than becoming a fatal causality. [American council of Life Insurance 2000]. Both short term and long term disabilities are related to the work environments. When a non occupational injury or illness renders the employee unable to work for certain period it is considered as a disability. Disability is divided into short term and long term for the purpose of providing the insurance.
Short Term Disability (STD)
Generally the Short term disability benefits are covered for the period of 13 to 26 weeks. This is done to cover the living expenses for short duration of time when the medical expenses are made. The chances of becoming temporary disable always exist when the employees fall between the age group of 35 to 65. Most of the financial planners suggest that the disability insurance is essential to secure financial well being [Health Insurance Association of America and JHA Survey May 2003]. Thus Short term disability coverage takes care of the situations when the financial plans are disturbed. Short term disability (STD) ensures certain guaranteed amount through health insurance for the period of sickness or injury. The amount paid against the premium is certain fixed percentage of the salary of the employee. The percentage can be 50 to 66 percent of the salary. The insurer starts getting the amount within a week of the becoming sick or disable. In short term disability the sickness has to be such that renders the employees unable to work and not just ordinary sickness. The short term policies are purchased by the individuals based on the nature of their work. When there is sufficient amount of saving held the people do not opt for the STD policy.
Maternity expenses are also covered through STD plans. Amount of the premiums is paid by the employers based on the selected benefits......
