Worksite Short Term Disability Insurance: Group and Individual Options

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What is short term disability insurance?

Short term disability insurance is designed to replace a portion of a person's income if a disability due to injury or illness temporarily prevents them from working. Through the worksite channel, this benefit is offered to employees by their employer. In addition, employers may choose to offer worksite individual and/or group short term disability insurance.

What is the difference?

  • Employee owns the policy
  • Employee may keep the coverage if they leave the business
  • Employer owns the policy and employees are issued a certificate
  • Employees cannot keep the coverage if they leave the business
  • Vary by business industry class
  • Based on employee classification and age at time of policy issue
  • Same across all industries and occupations
  • Increase at established intervals as employee ages
  • Available for W-2 and 1099 contracted employees
  • Available only for W-2 employees
  • Payroll deduction or Electronic Funds Transfer (EFT)
  • Only payroll deduction
  • Monthly benefit payments
  • Weekly benefit payments
  • Options range from 3 months to 60 months*
  • Either 13 or 26 weeks*
  • Maximum of $5,000/month
  • Maximum of $600/week
  • Guaranteed issue guidelines for groups with at least ten employees; health questions asked on application
  • No evidence of insurability needed if employee enrolls during initial eligibility period
  • Off-job or 24-hour coverage*
  • Off-job coverage only
  • Benefits are NOT reduced by Social Security Disability Income, workers' compensation, or employer paid time off
  • Benefits are reduced by any other income benefits which the employee receives or is eligible to receive (as defined in the policy)