both short-term and long-term group disability insurance
Short term disability (STD) pays a percentage of your salary
or a fixed monthly amount if you become temporarily disabled,
meaning that you are not able to work for a short period
of time due to sickness or injury (excluding on-the-job
injuries, which are covered by workers compensation insurance).
You generally start receiving money from your STD policy
within one to 14 days after becoming sick or disabled.
LTD policies provide you with income for a long period of
time, such as two years, five years, or until you retire.
Most people who have LTD insurance get it through their
employers, although you can buy individual LTD insurance
on your own.
LTD picks up where short term disability (STD) leaves off.
Once your STD benefits expire (generally after three to
six months), the LTD policy pays you a percentage of your
salary, usually 50, 60, or 66 2/3 percent. You then receive
benefits until you reach age 65.
What to look for in an individual long term disability
- Some policies pay benefits only if you are unable to perform
the duties of your normal occupation, while others will
pay only if you cannot work in any job at all.
- Extent of disability. Some policies require that you
be totally disabled before payments begin. Other policies
pay out for partial disability for a limited time, but most
often only if the partial disability follows a period of
total disability for the same cause.
- "Residual" benefits. Residual benefits can
help make up the difference in your income if you are able
to work, but are limited in your responsibilities due to
- Presumptive disability. Some policies will pay benefits
if you are still able to work but still have loss of sight,
speech, hearing, or use of limbs.
- When payments begin. You can choose to begin receiving
disability payments anywhere from 31 days to the first six
months. The longer you wait for a payment start date, the
less your premiums will be.
- Length of coverage. Generally, coverage will pay you
for two years, five years, or until you turn 65. The longer
you receive payments, the more your premium will be.
- Keeping pace with inflation. You can purchase a cost-of-living
adjustment (COLA) to add to your basic disability insurance
policy. This provision generally increases payout's by 4
to 10 percent each year.
- Waiver of premium. Most policies contain a "waiver
of premium" provision so that you do not have to pay
premiums if you are disabled for 90 days or longer.
Source: National Organization on Disability
There are numerous companies that sell group disability
insurance. It is a very competitive market. We will shop
this market for you and find the best possible plan from
a reliable carrier.
Please call us at 800-986-4786 for
more information about these and other Florida group health