Short-term disability insurance is meant to protect your income so you do not have to worry about how you will be able to pay for ongoing personal expenses while you are unable to work. This type of coverage is part of a complete financial plan to protect a person’s income and assets. There are many features of short-term disability, some of which may be confusing to people unfamiliar with insurance concepts and terms. One of the features is the benefit period.
We’d like to clear up any confusion on the topic to create transparency.
The benefit period can be defined as the beginning of the time that an insured person is eligible to begin receiving benefits from a disability claim to the time that the benefits from the policy ends. For example, if the benefit period is two years, income from the policy will be received for two years.
Essentially, the benefit period is the amount of time the policy pays the insured after a claim. The benefit period begins immediately after the elimination period is satisfied and the amount of benefits received is derived from other features in the plan.
This feature is the most important one to many people when picking a disability plan as it can determine how long the insured person can rely on income from the policy before they will have to find income from a different source, many times from a coupled long-term disability insurance plan if the disability lasts past the benefit period of the short-term plan.
How Long Do Benefit Periods Normally Last?
Short-term disability benefit periods generally last for a maximum of two years. However, the potential insured can choose from a range of benefit period options, the shortest ones maybe lasting only a few months.
Disclaimer: This information does not constitute financial advice. For specific information for short-term disability policy plans and features, consult your local insurance agent.