What’s the Difference Between Short-Term and Long-Term Disability?
Learn how these two types of coverage protect your income at different stages of recovery
Disability insurance is one of the most important tools for protecting your income when health issues arise. But there is often confusion about the two main types: short-term disability (STD) and long-term disability (LTD). While both replace a portion of your income if you cannot work due to illness or injury, they are designed for different timelines and types of conditions.
Understanding how they work and how they can complement each other helps ensure your income is protected whether you are facing a few weeks off or a life-altering diagnosis.
Short-Term Disability: Immediate Support for Temporary Absences
Short-term disability insurance provides income replacement for conditions that are expected to resolve relatively quickly. It helps you manage expenses while you recover from injuries, surgeries, or common illnesses that interrupt work.
| Feature | Short-Term Disability |
|---|---|
| Coverage duration | 15 to 26 weeks |
| Waiting period | 0 to 14 days |
| Income replacement | 60 to 85 percent of income |
| Common uses | Illness recovery, surgery, childbirth, accidents |
Most short-term policies are offered through workplace benefits, although some people may purchase personal coverage, especially if self-employed.
Tip: If your emergency fund would not last more than a month or two, short-term disability insurance offers essential protection and peace of mind.
Long-Term Disability: Extended Protection for Serious Conditions
Long-term disability insurance is designed for more serious health events that prevent you from working for several months or years. This can include cancer, chronic illness, major injury, or mental health conditions that require extended recovery.
| Feature | Long-Term Disability |
|---|---|
| Coverage duration | 2 years, 5 years, or to age 65 |
| Waiting period | 90 to 120 days (after STD ends) |
| Income replacement | 60 to 70 percent of pre-disability income |
| Common uses | Cancer, mental health, permanent disability |
LTD coverage can come through your employer, but many people opt to supplement it with individual policies that offer stronger protection or more control.
Caution: Not all long-term policies define disability the same way. Some only cover you if you cannot work any job at all, not just your specific role. Make sure you understand how your policy defines eligibility.
How They Work Together
In many cases, short-term and long-term disability insurance work together as part of a comprehensive income protection strategy. Short-term disability kicks in first, often immediately after your sick leave ends, and long-term disability continues support if your condition extends beyond the short-term period.
This coordination ensures that you are not left with a gap in income between the end of one benefit and the start of the next.
Note: If you rely on group benefits, double-check whether both STD and LTD are included. Some employers offer only one or may require you to use sick days or vacation time before benefits begin.
Which Do You Need?
Most working adults benefit from having access to both types of coverage, whether through an employer or with supplemental policies. You may prioritize one over the other depending on your personal savings, career stage, and financial commitments.
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You may need short-term coverage if you do not have enough savings to cover a few months of expenses without income.
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You may need long-term coverage if you want to protect retirement goals, avoid depleting investments, or ensure your family is supported in case of a serious condition.