For Texas residents, you have short and long term disability if you need it. But which one works best for your unique situation? How can you tell which one applies to you?
Today we will look at the answers to these questions. We will look into whether long or short term disability suits your situation better.
Short-term disability insurance
The Business Owner’s Playbook looks at long-term versus short-term disability insurance. Each type suits different situations. Short-term disability supports people who need help right now. But you must not expect to continue needing that help. Short-term disability coverage often lasts anywhere from 6 months to a year. It can last as little as 3 months as well.
Unfortunately, short-term disability insurance is often expensive. It is more manageable for people with group policy plans. A common benefit workplaces offer is short-term group plans.
Long-term disability insurance
Long-term disability coverage is for disabilities you expect to last a while. The elimination period is at least 90 days. After that, you can select terms by the year. Typical coverage is 2 years, 5 years, 10 years, to age 65 and for life. The premium depends on how long the benefit period lasts. This means lifetime disability insurance has a much higher premium than 2 year coverage.
Long-term disability insurance is less expensive than short-term disability insurance. At the same time, the group plans for long-term disability often cost more.
You should consult with an expert to decide which one is the right fit for you. It depends on the injury or disability you face and the prospective outcome you may see.