Fill Coverage Gaps and Protect Your Income
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Short-term disability insurance compensates a portion of your income if you are unable to work due to an accident or sickness that did not occur at work. If you are injured on the job, workers' compensation should cover both your medical expenditures and your income. If you are diagnosed with cancer or heart disease, or if you are injured on the job, short-term disability insurance can replace up to 70% of your base income for up to a year.
Workers can choose between short-term coverage provided by their employer and a private policy. A few states require that most firms provide coverage to full-time employees. New York, New Jersey, California, Hawaii, and Rhode Island are among the states that mandate it. If you do not live in one of these states, you should look around for disability insurance.
To find the top carriers, we compared nearly two dozen options based on policies, pricing, features, and third-party ratings.
The 5 Best Short-Term Disability Insurance Companies of 2022
- Best Overall: Northwestern Mutual
- Runner-Up, Best Overall: Ameritas Life Insurance
- Most Affordable: Aflac
- Best Service: MassMutual
- Best for Coverage Options: Mutual of Omaha
BEST OVERALL
Northwestern Mutual
Pros
- A long-term, financially secure supplier
- Various policy price levels are available.
- Excellent client satisfaction
- Dividends
Cons
- To obtain a quote, you must speak with an agent.
- Online access to restricted policy and premium information.
Why We Chose It
Northwestern Mutual has a long history and has received outstanding third-party ratings. It offers short-term disability insurance, life insurance, and other benefits. AM's highest Financial Strength Rating is A++ (Superior). Best— Northwestern Mutual was founded in 1857.
Northwestern Mutual's "Best Overall" ranking is based on the company's longevity, financial strength, and policyholder coverage options. These characteristics propelled it to the top of our list of the best short-term disability insurance for individuals and businesses alike. The company provides plans at various price points. Each has its own set of options, benefits, and levels of coverage. You can buy an insurance with features that will not vary over time for a lesser price.
Because it is a mutual firm (policyholders rather than investors own it), insured people may receive money back in the form of dividends based on their policies. Year after year, the company keeps 97 percent of its clients. This is one metric that illustrates how satisfied customers are with the company's services.
Northwestern Mutual does not provide online disability insurance quotes. Instead, the company needs potential clients to speak with a representative who can explain the short-term disability choices.
RUNNER-UP, BEST OVERALL
Ameritas Life Insurance
Pros
- A wide range of policies and riders are available.
- Policy flexibility
- Policy that is less expensive
Cons
- It would be preferable to discuss a quote with an agent.
Why We Chose It
Because of its history and stability, Ameritas has been in business since 1887 and is rated A (Excellent) by AM Best for financial strength. It was ranked second among the short-term disability firms we evaluated at due to these aspects as well as the vast range of policies and riders it offers.
You can customize the insurance offered by Ameritas Life Insurance to suit your needs. The various riders include income-based salary increases, cost-of-living increases, and a catastrophic disability rider that will aid with living expenses if you become unable of taking care of yourself. Additionally, the insurance provider provides coverage for "own occupation" for policyholders. This means that even if you are still able to hold other employment, you can file a claim if you are unable to work in your field.
This policy's benefits include reimbursement for medical expenses, quicker elimination periods for recently insured individuals in good health, and reimbursement for COBRA payments if you lose your work as a result of an injury or illness and no longer have health insurance.
Workers who put in at least 30 hours a week in low-risk jobs are eligible for affordable insurance under the company's flexible Fundamental policy. Although you can obtain a quote online, it's still a good idea to discuss your alternatives with a representative.
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MOST AFFORDABLEAflac
Pros
- Cheaper options
- Every five years, the value rider offers rewards.
- simple claims process online
Cons
- Shorter-term plans
- Only available through worksite payroll deduction
Why We Chose It
If you become harmed or ill and can't work, Aflac has one of the most affordable short-term plans available. The cost every week is about $8. Aflac was established in 1955, making it more recent than some other short-term suppliers. It has a great track record of long-term fiscal stability and an AM Best rating of A+ (Superior).
Compared to some of the other companies on our list, Aflac's terms are more condensed. Its benefit schedule lasts for six weeks. Up until the age of 75, you can renew. Every five years the policy is in force, the value rider increases payouts by $1,000.
Short-term disability insurance from Aflac is only offered through payroll deductions from employers, but the company also offers convenient online claim processing, and it only takes a few days to get payment for a covered incident. Because of this, Aflac is both affordable and user-friendly. It received our ranking as the best cheap short-term disability insurer as a result of these elements and satisfied customers.
BEST SERVICEMassMutual
Pros
- Put the consumer first
- enduring, financially stable business
- provides a rider that accounts for income growth
Cons
- No online quotes
- A medical exam could be necessary to obtain coverage.
Why We Chose It
MassMutual offers excellent customer support. Consumer Affairs has given the company an overall rating of four stars, and many customers agree that filing claims is simple and that premiums are affordable. MassMutual has been identified in our research as providing the finest service among short-term disability insurance rivals.
MassMutual has been in operation since 1851 and has received AM Best's highest grade, an A++ (Superior). The organization is a very reputable and safe insurer due to both its length and its exceptional financial strength.
The business provides income insurance coverage to protect you if you are harmed or ill and are unable to work. You can also include a rider to have your coverage go up when your income does. To determine the size of the coverage you require, utilize the website's disability income calculator. However, getting a policy might involve taking a medical check. While you cannot obtain a quotation online, the comprehensive and helpful website can assist you in researching your alternatives prior to speaking with an agent.
BEST FOR COVERAGE OPTIONS
Mutual of Omaha
Pros
- Adaptable and diverse policies
- Variety of benefit payments and conditions
- reputable, long-standing business
Cons
- To acquire a quote, you must speak with an agent.
- The price of the inflation protection option is lower than that of certain rivals.
Why We Chose It
Since it first began operations in 1909, Mutual of Omaha. The company has an AM Best financial strength rating of A+ (Superior). This is Mutual of Omaha's second-highest rating, which shows that it will be better able to pay out on current insurance claims.
For short- or long-term income replacement, Mutual of Omaha provides a policy called "Mutual Income Solutions." Depending on your plan and premium, it may begin as soon as 30 days after an incapacitating occurrence and provide benefits of up to $20,000 a month.
Variable and capped at 70 years of age is the length of coverage. The insurance has a number of built-in benefits, such as a premium waiver while disabled and a waiver of the waiting period if you become disabled for the first time in less than 30 days or again in less than six months.
If your disability prevents you from returning to your prior occupation, you can select from a few riders that will pay for specific illnesses, hospitalization, and healthcare expenses as well as "own occupation" coverage. For inflation protection, there is also a free option to automatically raise your monthly payout by 4% annually.
A personalized quotation from Mutual of Omaha cannot be obtained online; instead, you must speak with an agent.
What Is Short-Term Disability Insurance?
Depending on the policy you select, short-term disability will pay a portion of your income if you are unable to work in your chosen field or any job. If a person isn't protected by their employer's plan and doesn't have money they may use if they can't work, they may get short-term disability insurance.
For people who make a lot of money and would like not to drain their personal savings if they were unable to work for a short period of time, short-term disability may occasionally be a good thing.
Short-Term vs. Long-Term Disability Insurance
Once two weeks have passed following an illness or injury, short-term disability insurance often begins to pay out. It could endure for six months. If you have long-term disability insurance, it might pay for you if that period of time has passed and you are still unable to work. Short-term benefits must first expire before this coverage begins to apply. People who have long-term disability insurance may be able to replace their lost income for extended periods of time.
What Does Short-Term Disability Insurance Include?
Although short-term disability benefits can temporarily replace some of your income, they often don't begin on the day you submit your claim. Instead, a waiting period known as an elimination period is typically mandated by insurers between the time you make a claim and the time you start receiving payments. Although certain businesses might not have an elimination period for particular claims, most short-term insurance include an elimination period of two weeks.
The majority of short-term benefits also have this upfront phase and endure for three to six months before expiring. However, some businesses will provide coverage for up to two years. Some insurance plans could also have components that assist with covering medical costs. You might be able to add a rider, for instance, that would pay a lump sum if you developed a serious illness, like cancer. An own-occupation policy may also be an option for you, allowing you to make a claim if you are unable to continue in your current line of work.
What Does Short-Term Disability Insurance Exclude?
Short-term disability may preclude becoming wounded at work, in addition to having elimination periods and a finite amount of time to obtain benefits. This is because these incidents should be covered by state workers' compensation. Some insurance coverage may also exclude:
- Self-harm
- existing problems
- time off for child care
- being a mother
- having a child
What Are the Common Costs of Short-Term Disability?
Quotes for short-term disability may be as little as $8 a week or $32 a month. Your premiums may vary depending on the state you reside in, your age, your health, and your line of work. Costs are also impacted by your choice of riders and coverage levels. Whether you or your employer pay the premiums will determine whether or not your short-term disability benefits are taxable.
Is Short-Term Disability Insurance Worth It?
Receiving compensation even if they are unable to work due to injury or illness is valuable to many people. According to the Council for Disability Awareness, by the time they are 67 years old, 25% of all adults may require time off work due to illness or injury that could last up to a year.
Being insured safeguards your income in the event that you become ill or injured and don't have any emergency funds set away. However, you could decide to save money in case you get hurt and can't work instead of paying for insurance. To equal what you could get for $32 per month in policy payments, however, would need you to save aside a sizeable sum of money each month.
How We Chose the Best Short-Term Disability Insurance Companies
To determine the top short-term disability insurance in the key sectors, we examined more than 20 businesses. We evaluated each one according to its available products, price, riders, and offers, as well as according to its financial stability and customer service ratings.
