The terms STD (Short Term Disability) and LTD (Long Term Disability) refer to two types of disability insurance coverage, but they differ in their duration, eligibility, and purpose. Here’s a breakdown of the key differences:
1. Duration
- STD (Short Term Disability):
- Covers a temporary disability lasting a few weeks to several months, usually between 3 to 6 months.
- It typically kicks in after a short waiting period (e.g., 7 days) after the injury or illness occurs.
- LTD (Long Term Disability):
- Covers a disability that lasts for an extended period, often for years or until retirement age, depending on the policy.
- LTD usually starts after STD benefits run out, typically after 3 to 6 months of coverage.
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2. Benefit Amount
- STD:
- Typically provides a higher percentage of your regular income, often around 60%-80%, but for a shorter duration.
- The benefit is usually taxable if your employer pays the premium.
- LTD:
- Generally offers a lower percentage of your income, often 50%-70%, but can provide coverage for a much longer time.
- Like STD, LTD benefits are taxable if the employer pays the premium.
3. Eligibility and Waiting Period
- STD:
- Has a relatively short waiting period before benefits begin, often just a week or two.
- Eligibility depends on the specific policy, but most short-term disability insurance plans require you to have worked for a certain period or met specific health requirements.
- LTD:
- Has a longer waiting period before benefits are paid, typically 90 days or more after the disability occurs (after STD benefits end).
- Eligibility is based on the policy, and some require you to demonstrate you can’t perform the duties of your job or any other occupation.
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4. Types of Disabilities Covered
- STD:
- Covers temporary disabilities that prevent you from working, such as surgery recovery, pregnancy, or a short-term illness or injury.
- LTD:
- Covers more serious or long-lasting conditions that may prevent you from returning to work for an extended period, such as chronic illnesses, long-term injuries, or permanent disabilities.
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5. Purpose
- STD:
- Provides financial support during short-term health problems that prevent you from working.
- Intended to help you recover and return to work soon.
- LTD:
- Provides financial support when a disability is expected to last for a longer period.
- Helps protect you financially if you cannot return to work for a prolonged period or permanently.
If you are unable to work due to a disability, applying for insurance benefits may seem overwhelming. There is no need to feel overwhelmed by the paperwork – we are here to help you!
At Marc Whitehead & Associates, we are committed to helping people with disabilities receive the benefits they deserve. We have decades of combined experience to help you obtain the best possible outcome for your disability claim.
To learn more or to schedule a FREE consultation with a disability lawyer, call us today at 800-562-9830 or fill out our online contact form.
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