Are You Eligible For Short-term Disability Insurance If You Are To Work?

Injuries or illnesses may make it impossible for an employee to work or limit the types of jobs an employee can work. In some situations, the injuries or illnesses are more temporary whether others are more permanent. The question that then comes to the employee’s mind is, “how am I going to pay my bills while I am unable to work?” For employees whose injuries or illnesses are more temporary, they may be entitled short-term disability insurance that will provide wage replacement benefits while the employee recuperates.

What is short-term disability insurance?

Short-term disability insurance is a type of insurance that provides income replacement for employees who are temporarily unable to work due to illness, injury, or medical conditions, that occur outside of work. The coverage typically kicks in after a short waiting period (often referred to as an elimination period) and lasts for a set duration, usually anywhere from a few weeks to six months, depending on the policy.

The purpose of short-term disability insurance is to help individuals maintain financial stability during their recovery period by covering a portion of their lost wages. Benefits may cover 50-80% of the insured individual’s pre-disability income, though the exact percentage can vary depending on the policy.

Also, short-term disability insurance typically does not cover long-term medical conditions or disabilities that are expected to last beyond the short-term period, which would generally be addressed by long-term disability insurance. Employees who fact long-term injuries or illnesses may be entitled to Social Security Disability Insurance (SSDI) from the federal government and should contact an attorney, like an Oklahoma SSI Lawyer & SSD Lawyer, to see about filing for SSI long-term insurance benefits.

Which employees are entitled to short-term disability insurance?

Employees may be eligible in one of two situations: 1) State-provided short-term disability insurance and 2) employer-provided short-term disability insurance.

What is State-provided short-term disability insurance?

State-provided short-term disability insurance is insurance operated by a particular state. However, not every state provides short-term disability insurance. Moreover, each state that provide short-term disability insurance has different edibility requirements, waiting periods, wage-replacement limitations, and how long the duration the benefits will last. Additionally, many states provide paid family and/or medical leave insurance benefits that may or may not include the injury or illness of the employee.

States that current provide some sort of paid short-term disability insurance include:

What is employer-provided short-term disability insurance?

Employer-provided short-term disability insurance is a benefit can choose to offer to employees. Employers are not required to provide short-term disability insurance and many chose not to do so. Like with State-provided short-term disability insurance, each employer’s short-term disability insurance may provide different edibility requirements, waiting periods, wage-replacement limitations, and how long the duration the benefits will last.

What if I was injured or became sick while working?

Employee who are injured or became sick while working may be entitled to a different kind of short-term disability called Workers’ Compensation. Almost all employers are required to provide employees with Workers’ Compensation insurance.

Workers’ compensation is a form of insurance that provides financial support and medical benefits to employees who are injured or become ill as a direct result of their job. It is designed to help workers recover from work-related injuries or conditions by covering medical expenses, lost wages, and rehabilitation costs. In exchange, employees typically give up the right to sue their employer for negligence related to the injury or illness.

Key components of workers’ compensation typically include:

1. Medical Benefits: Covers the cost of medical treatments, including doctor visits, surgeries, medications, and rehabilitation related to the work injury or illness.
2. Income Replacement: Provides wage replacement for employees who are unable to work due to their injury or illness, often at a percentage of their regular earnings.
3. Disability Benefits: If the injury or illness results in long-term disability, workers’ compensation may provide ongoing benefits or a lump-sum payment based on the severity of the condition.
4. Death Benefits: In the unfortunate event of a work-related fatality, workers’ compensation may offer compensation to the surviving dependents of the deceased worker.

What if neither my state nor my employer provides short-term disability insurance?

Employees who do not have access to either state or employer-provides short-term disability insurance may still be able to take leave from work to address injuries or illness; however, the employee will not receive wage-replacement benefits. The federal Family and Medical Leave Act (FMLA) requires employers to permit employees to be absent from work for up to 12 weeks if the employee is suffering a serious health condition. To be eligible for FMLA leave, your employer must have 50 or more employees, and you must (1) have worked at least 12 months (which do not have to be consecutive) for the employer and (2) have worked at least 1,250 hours during the 12 months immediately before the date FMLA leave begins.

Also, some state have there own unpaid family and medical leave laws that permit employees to take leave due to a serious health condition. These states include:

Conclusion

If an employee must take leave from work because they have an injury or is sick, they may not be have to take the leave without some money coming in. For many, they may be entitled to short-term disability insurance and wage-replacement payments. In these situations, an employer should contact their supervisor, manager, or HR to see if they are entitled to either State or employer-provided short-term disability and Workers’ Compensation insurance benefits.