Short term versus long term disability insurance: pros and cons

Law Offices of Steven Zwick
May 01 2018

If you’ve been injured and have been rendered unable to work, then you might be eligible for disability insurance. Disability insurance is meant to cover some of the expenses of an injury or illness that prevents you from working.There are two forms of disability insurance: short-term and long-term. Which one is chosen will depend on your needs, your expectations and budget, and the advice of a personal injury lawyer. There are many pros and cons to both types of disability insurance.


The purpose of this type of disability insurance is to cover someone who is unable to work for a short period of time. The duration of a short-term policy can last up to two years, although a typical policy only lasts between three and six months. Short-term policies are often more affordable due to the shorter lifespan and can sometimes pay all or almost all of the worker’s usual salary in the first few months of coverage. Also, this type of policy typically begins coverage immediately following the instance of disability. On the downside, these policies often end after a few months which means the disabled person is left with no coverage. They also have fewer protection and payout options in certain circumstances.


This type of policy is meant to cover someone who has a disability that lasts longer than six months and can often be retained by the policyholder until the age of 75 or older. A long-term policy will usually cover up to 70% of a policy holder’s salary and will last the duration of the disability. They also offer better options and protections for payouts. The drawback to long-term policies is that they are typically much more expensive compared to short-term policies, and in most cases, a policyholder won’t start receiving benefits until three to six months after the incident of disability. This can leave a disabled person without any coverage for the first stages of their disability. There are many instances where a worker might suffer a disability, such as a work accident or slip and fall. Per fiscal year, cases of slip and falls account for roughly 25% of all reported injury claims. Being out of work and then hit with medical bills can be strenuous on you and your wallet. Hiring a personal injury lawyer can help get you the right compensation and coverage you need. If you’re in need of personal injury lawyers, call the Law Offices of Steve Zwick today.