Individuals can benefit from having both short-term and long-term disability coverage, which are designed to complement one another. Short-term disability benefits typically last about three to six months; eligibility for coverage usually starts after 7-14 days or less following the date that you became unable to work. In contrast, long-term disability coverage usually has an elimination period or period of ineligibility of anywhere from 30 to 180 days, with 90 days being common. Long-term disability benefits can last for varying periods, from two years to ten years, or even until retirement age in some cases. As a result, short-term disability benefits often fill in during the elimination period until long-term disability benefits begin.

Furthermore, short-term disability benefits usually provide for the replacement of about 80% of your gross monthly income. Still, long-term disability benefits typically only provide for the replacement of about 60% of your gross monthly income. Short-term disability policies often come as part of your employee benefits package. Long-term disability policies, in contrast, may come as a benefit of your employment or from purchasing a private policy.

Short-term disability insurance premiums often are much cheaper than long-term disability insurance policies. Private LTD policies may be especially more expensive than those offered through your employer. However, individual plans are not subject to the restrictions of ERISA, which can be beneficial if you are facing a denial of benefits.

In any case, you likely will find it helpful to have both short-term and long-term disability coverage. Since many disability insurance policies are tied to your employment, you might want to consider having a private LTD policy in place. Otherwise, if you lose your job, you won’t have any disability coverage if you become disabled and unable to work. In this situation, reliance on government programs typically will be insufficient, so obtaining a private LTD policy may be wise.

Bonnici Law Group has handled the claims of countless individuals who have encountered difficulties in procuring long-term disability benefits under their employers’ ERISA-governed insurance policies. We will protect your rights and advocate on your behalf throughout every stage of the claims process. Call our office at 858-261-5454 to set up an appointment to speak with us today.