HomeDisability InsuranceWhat is the difference between short-term and long-term disability insurance?
Disability Insurance
What is the difference between short-term and long-term disability insurance?
Short-term disability (STD): covers disabilities lasting weeks to months. Benefit period: typically 3–6 months. Elimination period: 0–14 days. Replaces 60–70% of income. Often provided by employers. Long-term disability (LTD): covers disabilities lasting months to years (or until retirement). Benefit period: 2 years, 5 years, 10 years, or to age 65. Elimination period: 90–180 days. Replaces 60–65% of income. The two products are designed to work together: STD covers the gap until LTD begins.
Key Points
- Short-term disability: covers weeks to months; benefit period 3–6 months
- Long-term disability: covers months to years; benefit period up to age 65
- STD elimination period: 0–14 days; LTD elimination period: 90–180 days
- Both typically replace 60–70% of income
- STD and LTD are designed to work together — STD covers the LTD elimination period
- LTD is the more critical coverage — most financial devastation comes from long-term disabilities