An online short-term disability insurance quote can provide an estimate of monthly premiums.
Three features affect the monthly premiums: the benefit period, the elimination period, and the monthly amount.
But how do you know which features meet your needs? How can you tell if you are spending too much or getting too little coverage?
Read this article to learn why you might choose each feature.
Use the links to get a quote based on your needs. Then, apply for a policy that fits your budget and gives you peace of mind.
Needs-Based Benefit Period
Applicants need different benefit periods for short-term disability. Longer claims payments mean higher premiums.
Your quote should match your need for extended coverage. Learn why you might choose a 3, 6, 12, or 24-month benefit period.
3 Months
A 3-month benefit period ends too quickly for most policyholders. Recovery times for many accidents and illnesses are often longer. But there is one exception.
- Most people cannot afford ongoing expenses like mortgage payments, utilities, and living costs if recovery takes more than three months.
- Some people have long-term disability insurance with a 3-month elimination period. For them, a 3-month benefit period is reasonable.
6 Months
A 6-month benefit period is a good choice for women planning a pregnancy. Short-term disability insurance covers maternity leave if bought before conception.
A 6-month benefit period offers a reasonable premium. It provides income protection long enough for most pregnancy-related disabilities.
This period covers complications before birth, recovery from labor and delivery, and postpartum medical issues. Recovery from labor typically lasts six weeks for vaginal delivery and eight weeks for C-section.
12 Months
A 12-month benefit period is a good choice for many low-income applicants. It helps fill gaps in Social Security Disability Insurance (SSDI).
SSDI covers disabilities lasting twelve months or longer. Private insurance can fill two gaps in this program: disabilities lasting less than twelve months and the five-month wait before benefits start.
A 12-month benefit period makes sense if SSDI replaces enough income.
24-Months
A 24-month benefit period is suitable for many higher-income applicants. It addresses concerns about the low amount of Social Security Disability Insurance (SSDI).
The current maximum SSDI monthly amount is $3,822. This limit leaves many recipients with inadequate income protection.
| Annual Income | Monthly Income | % Replaced |
|---|---|---|
| $90,000 | $7,500 | 51% |
| $120,000 | $10,000 | 38% |
| $180,000 | $15,000 | 25% |
A 24-month benefit period makes sense for higher-wage earners because it fills three gaps. These gaps are disabilities lasting less than twelve months, the five-month wait before benefits start, and the nineteen months receiving $3,822 or less.
Needs-Based Elimination Period
Applicants need different short-term disability elimination periods. Earlier claims payments mean higher premiums.
Your quote should match how soon you need support. Learn why you might choose 7, 90, or 180-day elimination periods.
7-Day
The highest premiums are for a 7-day elimination period. If you fit one of these categories, request a quote for claims starting after one week.
- You expect to file a claim in the next one to two years and want to maximize benefits.
- Women planning pregnancy can buy coverage before conception to avoid exclusions.
- People scheduling elective surgeries can buy coverage but must wait twelve months to satisfy pre-existing condition exclusions.
- You live check-to-check with no emergency fund. A brief income disruption will cause you to fall behind on bills, leading to debt and delinquency.
90-Day
Lower premiums are available with a 90-day elimination period. If you fit one of these categories, request a quote for claims starting after three months.
- You work in a state with a Paid Family Leave Program for short-term disabilities. Connecticut (12 weeks), Colorado (12-16 weeks), Massachusetts (20 weeks), and Washington (12 weeks) offer these benefits, but they are limited in duration.
- You have enough in an emergency fund to cover your bills for three months.
- You have a long-term disability policy with a three-month elimination period.
180-Day
The lowest premiums are for a 180-day elimination period. If you fit one of these categories, request a quote for claims starting after six months.
- You work in a state with temporary disability insurance ending after six months. Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico fall into this category.
- Your emergency fund can cover six months of expenses, or your spouse earns enough to support the family while you are not working.
- You have a long-term disability policy with a six-month elimination period.
Needs-Based Benefit Amount
Applicants need different short-term disability monthly benefit amounts. A policy paying $4,000 monthly costs twice as much as one paying $2,000. This math is true when the elimination and benefit periods are the same.
Request a quote based on the insurance company’s limits for income percentage and monthly maximum.
Percentage of Income
Most short-term disability policies will replace up to 66% of your income. This limit prevents over-insurance and encourages policyholders to return to work.
Request a quote based on the percentage of income you need insured.
Remember, the benefits are not taxed when you pay the premiums after tax. This rule means 66% of untaxed income goes further when the government does not take a portion.
Monthly Maximum
Most short-term disability policies have a maximum benefit amount ranging from $2,500 to $7,500. Higher-income applicants encounter this limit most often. They frequently insure less than 66% of their income.
$2,500 Monthly Max
| Annual Income | Monthly Income | % Replaced |
|---|---|---|
| $90,000 | $7,500 | 33% |
| $120,000 | $10,000 | 25% |
| $180,000 | $15,000 | 17% |
$5,000 Monthly Max
| Annual Income | Monthly Income | % Replaced |
|---|---|---|
| $90,000 | $7,500 | 66% |
| $120,000 | $10,000 | 50% |
| $180,000 | $15,000 | 33% |
$7,500 Monthly Max
| Annual Income | Monthly Income | % Replaced |
|---|---|---|
| $90,000 | $7,500 | Subject to 66% limit |
| $120,000 | $10,000 | Subject to 66% limit |
| $180,000 | $15,000 | 50% |
People in higher income ranges can often stack coverage. This option means owning two policies from separate insurers to get closer to 66% income replacement.
A generic short-term disability quote probably will not meet your needs. We hope these examples help you make a confident, informed decision. Consider your benefit period, elimination period, and monthly amount choices.
