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Know More About Short Term Disability Insurance

Know More About Short Term Disability Insurance


Know More About Short Term Disability Insurance

by Kimberly R. Velez

Incapacity needn't be life long. There are some folk who are disabled for a short time period due to some injury or sickness. A short term disability serves such folk and offers them a source of earnings until the time they recuperate.

Many a times, employees are injured off the job or cannot carry with their daily responsibilities due to sickness. Here in, a short term incapacity is used by employers. This incapacity type pays a percentage of the employee's earnings. The length of payment remains variable. It can either be for a fixed time or the payment can continue till the person recovers and returns to work.

In most cases, the coverage provided by this kind of insurance begins about fourteen days after an injury or a diagnosed illness. Regularly the staff are expected to finish their sick leave before they can avail the short term disability coverage. However, this usually occurs more often in cases where the employee is afflicted by a form of sickness and not an injury.

However, since short term disability insurance in not law imposed, its nature can vary from one company to another. Some firms may provide employer paid short term disability programs while others may offer employee paid incapacity programs. Typically the disability insurance is paid for by the employer. In case, the disability insurance has been paid by the worker, there are some tax implications to be considered.

If the employer selects to provide his staff with an incapacity insurance plan, he may select either of 2 strategies. First they can tie up with an external insurer by way of a contract agreement to cover disability. So in the event of an eventuality, it's the insurance service provider who pays for the benefits. Or, the employer might also select to set up a self funded benefit program. In this example, the employer at once pays for the benefits stipulated by the short term disability program.

It would not to be wrong to opine that the near term incapacity is a blessing for the employees. Each every employee can't avail the benefits of such plans. Its first essential to fulfill certain factors's to be fit for the same. First and foremost the employee needs to be working full time with the company. People who are working on part-time basis are not titled for such benefits. Also it's necessary the employee must have completed a particular reign in the company to avail the benefit. The tenure is again in the hand of the employer to choose.

This brings us to the realization that the near term disability is of enormous use in case of an adverse going on. So it is suggested that all the employees update themselves about the nitty- gritty of the same.

About the Author:
To know more about Disability Insurance and Disability Aids visit: http://www.about-disability.com

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