Disability Insurance Coverage: Short-Term vs. Long-Term Options Explained

Disability insurance protects your income if illness or injury prevents you from working. Policies offer three core benefit types:

• Total Disability: You cannot perform any duties of your occupation.
• Partial Disability: You can work but earn less than before.
• Specific Disability: You’re unable to perform a key task essential to your job.

Short-Term Disability (STD)

• Duration: A few weeks up to 2 years
• Benefit: Typically 60–70% of pre-disability income
• Source: Employer-sponsored or individually purchased

Long-Term Disability (LTD)

• Starts after STD benefits end
• Duration: Until retirement age (often 65)
• Benefit: Up to 60% of income

Choosing the Right Coverage

The amount you need depends on your income, expenses, dependents, and desired protection period. Compare policies from multiple insurers, paying close attention to benefit definitions, elimination periods, and exclusions.