YOU ASK:

What percentage of your salary do you receive if you are on short term disability?

WE ANSWER:

For private disability insurance, it depends on the percentage listed in the policy. The benefit percentage usually ranges from 50% to 85%, depending on the type of policy you get, subject to a specified maximum benefit.

To compute for this benefit, what you can do is determine the percentage to be used and then multiply this to the gross salary amount you have prior to the disability. This will be your monthly short term disability benefit amount.

For instance, if you have 60% disability benefits and you receive $3,000 as your gross monthly salary, then you stand to receive $1,800 in benefits.

These monthly payments will continue for 6 months to a year, again, depending on the terms of the policy. The payments will stop when the payment period is done or when you are able to recover from your disability.

The short term disability benefits will not exceed 100% of your salary. This is because short term disability benefits are designed to be just that - for the short term. The lower percentage rates are assumed to be an incentive for a person to work to become healthy and strong enough to earn at least the income he earned prior to the disability. If the benefit percentage is a bit high, then it may result in the beneficiary not wanting to go back to work and just wait for the next benefit check.

Please remember that you will only receive disability benefits only for the period where you are actually disabled or unable to function in such a way as to earn an income. (Eligibility for the disability benefits will vary for different policies.) The disability insurance will not pay if you need to go off work to avail of your maternity leave or any similar instance.

Employment Status

Most employer-sponsored plans will usually require you to meet certain eligibility requirements before you can receive short term disability benefits.  One of the requirements would be the length of time one has worked in the company.

Waiting Period

You will have to wait a specified period of time after the commencement of your disability benefits will begin.

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