Knowing your benefits … Short Term Disability
Short Term Disability Insurance is a term that comes up when talking about benefits. Like most insurance you may not understand its full benefit until the time comes to use it, especially when your family depends on your income. Do you have plans in place when you are unable to provide an income for yourself or family due to an injury, illness, or pregnancy? Typically when a disability happens and prevents team members from earning their income they must either make drastic lifestyle changes or get some sort of supplemental coverage to stay financially afloat.
Short Term Disability provides benefits from the eight day of disability up to 25 weeks. The benefit is 60% of your pre-disability earnings up to $1,000 per week and is not taxed. Disability must be solely caused by sickness, injury, or pregnancy and causes you to be unable to perform the majority duties of your position. Tax free benefits of 60% of your current income are very close to your normal taxed take home pay.
There are terms that you cannot have injury, illness or be pregnant when signing up for disability benefits, it must be something you have in place before the injury, illness, or pregnancy happens. Short Term Disability requires a monthly premium and while receiving the benefit you will continue to pay that premium.
Some things to keep in mind as you decide whether Short Term Disability Insurance is something for you:
- Can your family financially maintain while you are unable to provide an income? (Mortgages, car payments, groceries, etc.)
- Ladies, are you planning on having children in the near future?
- Does your position require a high amount of physical work?
If any of those statements apply to you then Short Term Disability is something that you need to think about and potentially sign up for during our open enrollment period each September.
To protect you and your family from a financial disaster, in the event you are unable to continue to earn your income due to illness or injury or even pregnancy, short term disability is an excellent option. The cost of the premium may be is well worth the security of your family’s financial future. If you have questions reach out to the Happier People Department to learn more.
A Healthy Team is a Happy Team.