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Short Term Disability (STD)

The Short Term Disability (STD) insurance is an insurance coverage that partially replaces the loss of the insureds’ income when they become disabled due to an accident, illness, or pregnancy.


Eligibility


The group must be comprised of at least 10 individuals. They must be full time active employees of the employer. Full time means working a minimum of 30 hours in a work week.


Benefits Offered


The benefit may be expressed in a fixed dollar amount or a percentage of the weekly salary of the insured because it is based on a 7-day work week. The maximum allowed benefit will be up to 70% of the insured’s weekly salary. Benefit duration is from 13 weeks up to 26 weeks. The benefit percentage may consist of: 50%, 60%, 66.67%, or 70% of the weekly salary.


Minimum weekly benefit


Available options: $0, $25, $35, $40, or $50 per week


Length of Benefits


The available options are 13 and 26 weeks. For policies that include both, STD and LTD coverage (Long Term Disability Insurance) for the same policyholder within the same group, the length of the STD benefit must be considered with the provisions of the LTD coverage to avoid a coverage overlap.



The available options are 1, 8, 15, and 31 days for disabilities caused by accidents, and 8, 15, and 31 days for disabilities caused by illnesses.


Hospitalization Coverage from Day One


This option is available to provide benefits starting on the first day of hospitalization or treatment in a hospital facility or surgery center.


Successive Periods of Disability


If successive disability periods are not separated by at least two weeks of full time employment between them, they will be considered as one disability period. An individual previously insured under a previous STD plan does not have to satisfy a new elimination period before the Universal Life Insurance Company coverage may begin.





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