The Long and Short of Disability

Depending on your condition and treatment regimen, you may need to take some time off from work. It is important to learn about short-term and long-term disability insurance plans that may be available to you. These plans can each cover a percentage of your salary if you can't work because of an illness or disability. But the long and short of it is, they each have their own rules.

Short-term disability insurance plans—There are two types of short-term plans: (1) a private policy that is offered through your employer or purchased on your own, and (2) state-sponsored policies. Five states—California, Hawaii, New Jersey, New York, and Rhode Island—and Puerto Rico currently have short-term disability insurance plans for employees, according to the U.S. Chamber of Commerce. Plans differ from state to state. They may begin as soon as 1 weeks' time and last up to 1 year. Contact your state’s insurance department for more information.

Long-term disability insurance plans—These plans can be private policies offered through your employer or purchased on your own. In addition, there are two long-term plans that are administered by the federal government. They usually start when short-term disability benefits end. Long-term disability benefits typically replace 60 percent to 70 percent of your income. You have to be qualified as disabled for 1 year or more to qualify. Contact your state’s insurance department or the Social Security Administration for more information.