Disability protection for the short-term, otherwise known as STD, is a product offered by employers to provide income replacement for, as the name says it short periods of time, typically for 180 days or less. Most minor injuries or illnesses that would not commonly qualify for a Long Term Disability, LTD, claim would then qualify. When you consider that most of minor injuries or ailments that result in a claim are resolved in short periods of time, the out of pocket expense to own this policy is very costly.
For medical professionals, this sort of protection is typically not needed because of employment agreements and usually your employer will continue to pay you from 90 to 180 days. When you are self-employed going without this type of protection is fine if you know you have receivables coming in the door for up to 180 days.
The one exception, to which I would recommend short-term disability income protection, is if you are a female professional and you intend to have children. Depending on how long you plan to take maternity leave or what your employment contract states (if not self-employed), this type of policy might be beneficial. However, the premiums can be quite high relative to other types of income protection. The only way to determine if it is appropriate is a premium versus benefit analysis. A professional specializing in disability insurance should be able to provide you with this and offer suggestions as to which direction to go.
Whether choosing Short or Long Term Disability income protection, making certain you are aware of the pros and cons to the many options available is both fiscally and intellectually wise. Consulting an income protection specialist can provide you with the comfort and knowledge that you are getting the right protection.
Stacia Musleh
V.P. Income Protection Specialist
