Edulet
Active member
Some people have questions about how exactly short term disability insurance works. Often, they assume that the benefits are paid only while they are receiving hospital treatment. This isn't the case, however. The insurance coverage will continue even after discharge from the hospital, if you were injured while not in the hospital. In fact, benefits will continue even if you end up choosing not to go to the hospital at all.
If you have an injury that keeps you from working for a short time, but not necessarily for a full month, you may qualify for benefits under the COBRA (Consolidated Omnibus Budget Reconciliation Act) to extend your benefits for a short period. COBRA must be renewed annually, though, so if you are considering applying for short term disability insurance for your benefit year, it's important to remember that the coverage will lapse if you do not renew it. You can call your insurer and ask about COBRA continuation benefits when you initially buy your short term disability insurance policy.
If you are wondering what happens to the rest of you if you are injured and cannot work for a short period of time, the short term disability insurance will pay most, if not all, of your expenses. The benefits will provide you with assistance in getting medical care as well as in paying for your lost income and services. The benefits do not pay you anything else, such as a pension or social security benefit. Unlike a life insurance policy, however, you do not have to wait to start receiving benefits. Once you are injured and unable to work, the COBRA continuation benefits kick in and provide you with everything you need to get by until you receive your normal benefits.
Even if you are no longer eligible for benefits under COBRA, you can still receive short term disability insurance from other sources. If you become injured and are found eligible for long term benefits, you might be able to continue to collect them through COBRA, provided that you maintain your coverage during your COBRA eligibility period. In order to do this, you will need to inform your insurer that you are continuing COBRA. When you do so, you should immediately stop receiving any benefits. Maintaining your COBRA coverage is important if you really want to remain covered under the short term disability insurance.
There are several ways that an individual can continue their coverage even if they become ill or permanently disabled. One option is through continuation benefits. If you have exhausted COBRA benefits, you may have the option to receive short term disability insurance from your employer, or through other sources. In addition, many employers offer short term disability insurance to their employees in return for good wages. However, it is important to note that COBRA does not cover sickness and disability.
Another way to receive short term disability insurance is by choosing one of the various short term policies that offer coverage even if you have a pre-existing condition. These policies typically have a shorter waiting period and generally only pay out the difference if you become injured or sick during the waiting period. This type of policy may also have fewer limitations and less expense. However, these policies are much more expensive than most other short term policies.
Short term disability insurance has several distinct advantages over COBRA. It provides protection in the case of unexpected injuries or illnesses, and it provides coverage even if you have a pre-existing condition. Short term disability policies also tend to be more affordable and can provide greater protection for the long term. If you are injured on the job, it is especially important to consult with an experienced worker's compensation attorney to ensure that you receive the maximum benefits.
