New Jersey residents may need to look into disability insurance. For example, you may end up injured on the job. You could need the financial support of disability benefits for some time. It all depends on the type of injury you suffer from.
But a disability differs greatly depending on how long it may last. In accordance with this, the benefits for short term and long term disability also differ. Coverage and cost are the two biggest categories you can find these differences in.
Long term disability benefits vs short term
The Hartford discusses how long term and short term disability benefits differ. Long term disability benefits cover injuries or disabilities that may last a while. The shortest period of coverage is often two years. Coverage also often covers 5 years, 10 years and up to age 65. In some cases, there are also lifetime coverage plans. You must wait 90 days before this type of benefit kicks in.
As the name implies, short-term disability covers shorter periods of illness or disability. The most common coverage periods are 3 months, 6 months and one year. The elimination or waiting period for this type of insurance is also much shorter.
Cost differences
For cost, short-term disability coverage is often expensive to individuals. But many companies offer short-term group plans. This allows you to share the financial burden along with the benefits. In comparison, long-term disability insurance costs much more. The longer the benefit period is, the higher your premium may get. This is crucial to keep in mind when deciding what plans may suit your lifestyle and work situation best.
