Two common types of disability coverage are short‑term disability and long‑term disability. They serve a similar purpose, but they are designed for different situations.

What Is Short‑Term Disability?

Short‑term disability provides temporary income replacement when the insured is unable to work due to a qualifying medical condition.

Typical Features:

• Coverage duration is usually 3 to 6 months, sometimes up to 1 year.
• The waiting period is often 0 to 14 days before benefits begin.
• The benefit amount typically replaces 50 percent to 70 percent of the insured’s income.

Common Uses:

• Recovery from surgery
• Pregnancy and childbirth
• Short-term illnesses
• Non-work-related injuries

When Short‑Term Disability Makes Sense

Short‑term disability is ideal for temporary conditions where recovery is expected within a few weeks or months. It acts as a financial bridge during short gaps in income for the insured individual.

What Is Long‑Term Disability?

Long‑term disability provides income protection for serious or ongoing medical conditions that prevent the insured person from working for an extended period.

Typical Features:

• Coverage duration may be 2 years, 5 years, 10 years, or until retirement age.
• The waiting period is often 90 to 180 days after disability begins, typically starting after short‑term disability ends.
• The benefit amount usually replaces 50 percent to 60 percent of the insured’s income.

Common Uses:

• Chronic illnesses
• Severe injuries
• Cancer treatments
• Degenerative diseases
• Long-term mental health conditions

When Long‑Term Disability Is Essential

Long‑term disability is crucial for protecting the financial future of an insured individual who is unable to work for an extended period, or who may never return to work.

Do Insured Individuals Need Both Short‑Term and Long‑Term Disability?

In many cases, yes. They complement each other.

• Short‑term disability covers immediate income needs.
• Long‑term disability provides long-lasting financial security if recovery takes longer than expected.

Without short‑term disability, the insured may face a gap before long‑term disability benefits begin. Without long‑term disability, the insured person may struggle financially after short‑term disability expires.

Short‑term and long‑term disability coverage both play important but different roles in protecting the insured’s income. Short‑term disability supports the insured during temporary setbacks, while long‑term disability protects against the financial impact of more serious or long-lasting health challenges.

Partnering with Pierce Group Benefits

Employers who partner with us to offer short-term and long-term disability show a strong commitment to supporting their employees’ health and financial well-being. Employees gain access to an invaluable safety net to help with medical bills and everyday expenses. This added protection offers peace of mind and greater financial stability for themselves and their families. To learn more, contact your Pierce Group Benefits Account Executive or email partnership@piercegroupbenefits.com.