Employers, if you want to set up disability insurance:
Short-Term Disability (STD)
Short-term disability insurance pays you a portion of your income for a short period of time after you run out of sick leave. Most plans have a waiting period (also known as an elimination period on contracts), which is the number of days that you must be disabled/unable to work before you start receiving benefits. The waiting period is usually 1-7 calendar days from the date of illness or injury. STD benefits are paid weekly and the duration is typically between 13-26 weeks.
Some common life events that are usually covered by STD:
Note: STD coverage does not typically cover work-related injuries.
Long-Term Disability (LTD)
Long-term disability insurance is coverage that pays you if you're unable to work for a longer period of time than a short-term disability. Most plans have a waiting period (also known as an elimination period on contracts), which is the number of days that you must be disabled/unable to work before you start receiving benefits. LTD waiting periods are usually 90-180 days from the date of illness or injury. If you're enrolled in both STD and LTD, you'll typically start receiving LTD benefits right after your STD benefits end. The duration of the LTD benefits varies, but it usually provides coverage until the employee returns to work, is no longer disabled, or reaches the Social Security retirement age.
Some common life events that are usually covered by LTD: