SLPC 25094 01/17 (exp. 01/19)
Make sure your paycheck is protected when you are unable to work due to a short-term disability.
Short-term disability1 insurance provides you with a weekly cash benefit to help pay for everyday expenses (such as mortgage/rent, utilities, childcare, or groceries) if you are unable to work for a short time due to a covered disability (e.g., back injuries, recovery from surgery, or even maternity leave).
How does it work?
Short-term disability insurance provides you with a check that pays you a portion of your income once your claim is approved, which can help lessen the financial impact of a covered disability.2 When you purchase this insurance through work, it can help you manage your expenses without relying solely on your savings.
Short-term disability insurance may replace a portion of your income typically for up to 13 or 26 weeks. Your plan costs depend on your age, your benefit amount, and other factors.
What should you consider?
When deciding to sign up for short-term disability insurance, consider the following:
- How much would I need to cover my expenses?
Add up your monthly expenses to determine how much replacement income you might need. Then, check the plan your employer is offering you to figure out how much replacement income you are eligible for and see if that amount fits your needs. Based on the plan, you may have the option to choose a percentage of your current income or a specific dollar amount—up to the maximum amount allowed by your plan. If you choose a percentage of your income, use this formula to calculate how much of your monthly expenses might be covered:
- Monthly income x percentage amount = potential benefit
- How soon would I receive benefits?
Depending on your plan, you may be able to start receiving replacement income one week, two weeks, or a month from the date you are unable to work due to a disability covered by your plan. Consider how long your savings will last before you would need replacement income and how other sources of income or insurance might impact your benefits.
1. In Vermont, the product name is Short-Term Income Replacement insurance when the maximum benefit duration elected is less than 26 weeks.
2. Keep in mind that other sources of income could impact your benefit amount.
This policy contains limitations and exclusions that may affect benefits. Please see the certificate or ask your benefits administrator for information on elimination periods, waiting periods, and pre-existing conditions limitations.
This coverage does not constitute comprehensive health insurance (often referred to as “major medical coverage”) and does not satisfy the requirement for Minimum Essential Coverage under the Affordable Care Act.
Group insurance policies are underwritten by Sun Life Assurance Company of Canada (Wellesley Hills, MA) in all states, except New York, under Policy Form Series 93P-LH, 15-GP-01, 12-DI-C-01, 12-GPPort-P-01, 12-STDPort-C-01, 16-DI-C-01, TDBPOLICY-2006, and TDI-POLICY. In New York, group insurance policies are underwritten by Sun Life and Health Insurance Company (U.S.) (Lansing, MI) under Policy Form Series 15-GP-01, 13-GP-LH-01, 13-LTD-C-01, 13-STD-C-01, 06P-NY-DBL, 12-GPPort-01, and 12-STDPort-C-01. Product offerings may not be available in all states and may vary depending on state laws and regulations. The group insurance policies described in this advertisement provide disability income insurance only. They do NOT provide basic hospital, basic medical, or major medical insurance as defined by the New York State Department of Financial Services.