What Are the Differences Between Long-Term and Short-Term Disability Insurance?
If you work for a Washington, D.C. employer and cannot work due to a serious injury or illness, you may have access to both short-term and long-term disability benefits. These benefits replace part of your income but work differently.
What is Short-Term Disability?
Short-term disability (STD) offers temporary financial support when you cannot work. Here’s how it works:
- Coverage Length: Typically lasts up to six months. The exact time depends on your employer’s policy.
- Income Replacement: Pays about 60% of your income.
- Eligibility: You usually apply through your employer’s HR department. Insurance companies like Unum or administrators like Matrix often manage these claims.
- Exclusions: Many policies exclude work-related injuries if workers’ compensation applies.
- Ease of Approval: Approval is often simpler since benefits are for a short time and funded by your employer.
What is Long-Term Disability?
Long-term disability (LTD) provides financial help for extended periods when you cannot work. Here’s what you should know:
- Coverage Length: Begins after six months and may last for years, often until retirement age.
- Income Replacement: Covers about 60% of your income.
- Eligibility Criteria: Proving eligibility can be harder. Policies may require evidence you cannot work in your own or any job.
- Limitations: Some conditions, like mental health-related disabilities, may only be covered for 24 months.
- Offsets: Benefits may be reduced if you receive Social Security, workers’ compensation, or retirement benefits.
Key Differences Between Short-Term and Long-Term Disability
Short-term disability (STD) is meant for temporary conditions, lasting up to six months. It helps replace income while you recover and return to work. It’s easier to qualify for because the benefits are shorter, and the approval process is usually simpler.
Long-term disability (LTD) is for serious or permanent conditions. It starts after six months and can last for years, often until retirement. LTD is harder to qualify for because it requires more proof, including detailed medical evidence. Policies also have stricter rules, like limits on mental health claims or reductions if you get Social Security or workers’ comp benefits.
The main difference is duration and complexity. STD is short-term and easier to access, while LTD is long-term and has tougher requirements. Together, they can provide important financial protection when you need it most.
Need Help Applying for Disability Benefits in D.C.?
Applying for disability benefits can be stressful. We handle everything for you, including working with your doctors and dealing with the insurance company. But don’t wait, if your claim was denied, the clock is already running. Give us a call at 202-393-3320 or schedule a free and same day consultation by clicking here.