Short-term and long-term disability

Set up disability insurance

Employers, if you want to set up disability insurance:

• You can see quotes and set up new disability insurance coverage through Gusto anytime. You must offer medical coverage first.
• If you already offer disability insurance through a third party, head to this article to set up payroll deductions 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.

Full-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.

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:

• A disabling injury
• Prolonged sickness
• Giving birth

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:

• Musculoskeletal/connective tissue disorders (back pain, osteoarthritis)
• Cancer
• Accidental Injuries
• Cardiovascular/circulatory disorders (heart attack, coronary artery disease)
• Mental disorder