Short-Term and Long-Term Disability Insurance

Short-Term Disability Insurance

Short-Term Disability Insurance (STD) provides employees the means to help replace a percentage of lost income should they become totally disabled due to a non-occupational accident or sickness, including pregnancy or complications of pregnancy. A typical STD policy provides employees with a predetermined percentage of their weekly or biweekly salary for 13 or 26 weeks (after any applicable waiting period). There is usually a maximum weekly benefit (60% of pay or up to $500) allowed so employees cannot earn more on disability than they could if they returned to work. Benefits begin 1st day for accident and 8th day for sickness.

Long-Term Disability Insurance

Long-Term Disability Insurance (LTD) provides employees the means to help replace a percentage of lost income should they become totally disabled due to a non-occupational accident or sickness, including pregnancy or complications of pregnancy. A typical LTD policy provides employees with a predetermined percentage of their weekly or biweekly salary for two years, five years, or until retirement (after any applicable waiting period). There is usually a maximum weekly benefit amount ($100 to $1150 in $50 increments) allowed so employees cannot earn more on disability than they could if they returned to work.

The pre-existing condition clause is waived for short term and long-term disability insurance products for groups with two or more enrolled employees. One-person groups who elect to apply for short-term disability insurance will have a pre-existing condition clause incorporated into their policy.

Employees are strongly encouraged to enroll at the implementation of the short-term and long-term disability policies. Enrollment at the onset ensures guaranteed acceptance with no medical questionnaires. If an employee elects to enroll at a later date, they will be subject to an extensive medical questionnaire and in some cases, a physical exam.

The short-term and long-term disability insurance products offered by Spring are voluntary products, and therefore employees have the option to enroll. The voluntary nature of these products allow the insurance premium to be paid for in a variety of ways, unlike health insurance, which requires employers to pay a minimum of the premium.