Short-term and long-term disability

Disability insurance helps protect your income if you cannot work due to an illness, injury, or medical condition. It replaces part of your paycheck while you recover.

Short-term disability (STD)

Short-term disability insurance pays you part of your income for a short period of time if you're temporarily unable to work after you run out of sick leave. 

When benefits are paid

Most plans have a waiting period, which is the number of days you must be disabled/unable to work before you start receiving benefits. This is usually 1 to 7 days after your illness or injury begins. This is also called the elimination period.

STD benefits are paid weekly and typically last 13–26 weeks.  

What it covers

STD usually covers common life events like:

  • A disabling injury
    • Note: STD coverage does not typically cover injuries that happen at work.
  • Prolonged sickness
  • Giving birth
Long-term disability (LTD)

Long-term disability insurance pays part of your income if you’re unable to work for a longer time, usually after your short-term disability ends.

When benefits are paid

Most plans have a waiting period, which is the number of days you must be disabled/unable to work before you start receiving benefits. This is usually 90-180 to 7 days after your illness or injury begins. This is also called the elimination period. 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 benefit depends on the plan. LTD may continue until you:

  • Go back to work
  • Are no longer disabled
  • Reach Social Security retirement age

What it covers

Some common life events that are usually covered by LTD:

  • Musculoskeletal/connective tissue disorders (back pain, osteoarthritis)
  • Cancer
  • Accidental injuries
  • Cardiovascular/circulatory disorders (heart attack, coronary artery disease)
  • Mental disorder
Set up disability insurance

Global Access admins can see quotes and set up new disability insurance coverage through Gusto anytime. You must offer medical coverage through Gusto first.

If you already offer disability insurance through a third party, admins can set up payroll deductions, manage leaves, and report benefit payouts

Find your plan details

If your company offers disability insurance through Gusto (including the broker integration), admins and benefits-eligible employees can find their plan's Summary of Benefits and Coverage in Gusto.

Global access and benefit admins:

  1. Sign in to your Gusto admin account.
  2. Go to the Benefits section.
  3. Choose the plan type—Short-Term Disability or Long-Term Disability.
  4. Click Plan details.

Employees:

  1. Sign in to Gusto.
  2. Go to the Benefits section.
  3. Choose the plan type—Short-Term Disability or Long-Term Disability.
  4. In the "Plan name" row, click your plan.