When a medical condition leaves you unable to work, understanding your options for income replacement is critical. Many people ask: What is the difference between short term and long term disability? While both benefits provide financial support during a period of illness or injury, they serve different purposes and timelines. Knowing how these two benefits work together can make a significant difference in how you plan your recovery and protect your income.
What is Short Term Disability?
It is a weekly income benefit that supplements your income (or a portion of it) if medical reasons are stopping you from working. The STD benefits can cover you up to six months depending on the terms of your STD insurance policy, and is meant to be a temporary relief.
What is Long Term Disability?
It is a benefit that is often available to you through a group insurance plan (i.e. through your employer) or it can be purchased individually, and is designed for prolonged medical issues. It is a monthly income benefit that supplements your income (or a portion of it) if medical reasons are stopping you from working. Unlike STD, MOST long term disability policies cover you until age 65. Like the name suggests, if you are on a LTD medical leave and do not anticipate being able to return to work, you should qualify for long term disability.
An employee should apply for short term disability benefits first before they are eligible to apply or transition to long term disability. The STD benefit period is the waiting period until long term disability comes into effect.
For example, if your STD benefit period is 6 months, your LTD “waiting period” would be 6 months. You’d apply for STD first and if you are still medically unfit to go back to work after 6 months, you’d be eligible to apply for LTD. If you’re dealing with the same insurance company for STD and LTD, the insurer should transition your STD application to an LTD application.
Why is hiring a disability insurance lawyer so important?
Juggling between disability benefits, payment amounts, and insurance company representatives is stressful. It becomes even more difficult when you’re trying to balance medical appointments and communication with your employer. If you’re struggling with balancing all the information from your employer, medical practitioners and your insurance company – give us a call, our lawyers at Whitten & Lublin can help. We offer a free consultation for both the disability claims. Contact us online or call 416 640 2667.
Author – Aman Chaggar
