Short-Term vs. Long-Term Disability
A comparison of waiting periods, claim durations, and cost characteristics.
When evaluating disability coverage to protect your income, you will choose between two core options: Short-Term Disability (STD) and Long-Term Disability (LTD). Understanding the differences helps you structure appropriate coverage.
Short-Term Disability (STD)
Short-term policies are structured to handle temporary medical leaves.
- Benefit Duration: Typically pays benefits for 3 to 6 months.
- Elimination Period: Very short waiting times, usually 7 to 14 days after an injury or illness before payments begin.
- Coverage: Frequently covers recovery from minor surgeries, temporary illnesses, and maternity leave.
Long-Term Disability (LTD)
Long-term policies protect against severe, permanent, or chronic medical conditions.
- Benefit Duration: Pays benefits for 2 years, 5 years, 10 years, or until retirement age (65/67).
- Elimination Period: Longer waiting periods, typically 90 or 180 days.
- Coverage: Triggers payouts for severe conditions like cancer, major strokes, degenerative disorders, or severe permanent injuries.
Key Comparison Summary
| Parameter | Short-Term | Long-Term |
|---|---|---|
| Waiting Period | 7 to 14 days | 90 to 180 days |
| Max Benefit Duration | 3 to 6 months | Multi-year or until retirement |
| Typical Payout Rate | 60% to 70% of salary | 50% to 60% of salary |
There are currently no direct referral partners available for this line of coverage in your region. We recommend researching reputable local carriers or discussing with a licensed professional to compare options.