Short Term Disabilityor "Paycheck Insurance" is a benefit that no one can afford to be without. Becoming disabled through an injury or sickness can mean a significant loss of income. Disability insurance is a form of insurance that provides a person who becomes disabled with income to cover living expenses, which will continue in spite of the disability. Although an employer cannot afford to pay an employee while he is unable to work, a Short Term Disability Plan is an inexpensive way to ensure that the employee will still be able to maintain an adequate lifestyle during a disabling illness or injury.

A typical Short Term Disability plan starts to pay benefits after the employee has been off work for one or two weeks, and pays benefits up to 3 months (13 weeks) or 6 months (26 weeks). If the employer also provides a Long Term Disability policy, the benefits for the Long Term Disability will begin after the Short Term benefits have been exhausted.

Long Term Disability is just like Short Term Disability in that it pays benefits to the employee while he is unableto work due to a disability. However, Long Term Disability does not usually pay benefits until the employee has been out for 3 months or more (this elimination period usually coincides with the ending date of the Short Term Disability policy). In addition, Long Term Disability benefits often continue until retirement age, if the disability continues until retirement.