Short Term Disability

Disability Insurance

Accidents, illnesses and debilitating situations can happen without warning and result in costly fallout. The exposure of becoming disabled is bigger than one might expect. It’s projected that 1 in 4 of today’s 20 year-old employees will become disabled before they reach retirement. Circumstances such as excess body weight, high blood pressure, and tobacco use may significantly increase the risk. 

Although, too regularly, the cost of disability insurance can look intimidating to employers, specifically smaller businesses. Whether your company is established or just starting out, MCI can offer you streamlined access to fundamental, affordable short- and long-term disability insurance coverage through our insurance carrier alliances.

Short-Term Disability Insurance

Short-term disability insurance pays a percentage of an employee’s salary for a specified period, if they are ill or injured, and can’t perform the duties of their job. Coverage typically starts anywhere from 1-14 days after a covered employee experiences a condition that leaves them unable to perform the duties of their work. 

Often times, employees are required to utilize sick days before short-term disability insurance begins. You can choose a short-term disability to cover just sickness or just injury or both sickness and injury. 

Depending on the short-term disability insurance policy and your employee handbook, primary qualifications typically state that:

  • Employees need to work for the employer for a certain period of time before coverage starts
  • Employees need to work full-time, typically 30 hours or more a week

A typical short-term disability insurance policy package may include:

  • A percentage of weekly wages paid are typically between 50% – 70% of weekly wages
  • The duration of the short-term disability benefits are typically between 10 to 26 weeks
  • The maximum amount of time covered under this disability program is usually until age 70

Keep in mind that disability insurance requirements vary from state to state, so it’s important to know what laws apply to your business.