Take Care of Your Team
Occasionally, a team member encounters an injury or illness situation in which he or she is unable to work for a short period of time. That can cause a loss of wages or salary which, in turn, can create undue hardship and stress for employees and their families.
Employers often seek a way to help, so insurers offer Short Term Disability insurance as part of an employee benefits plan.
Known in the insurance world as STD, the coverage pays a percentage of an employee’s salary for a specified period of time, usually up to 120 days. Typically, the benefit pays 2/3 of the employee’s weekly gross income but is flexible depending on the employer and insurance company requirements.
STD is often included in a benefit plan to provide some relief in the interim, for those few employees that eventually need to transition to Long Term Disability, which, always has a waiting period before it kicks in. Most insurers require that companies provide LTD coverage to employees if they want to offer STD. LTD is insured income supplementation or replacement over a longer period of time. Income losses can be considerable and for that reason, insurance makes sense.