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Pricing Survey
of Short Term Disability Insurance (individual markets)

Use this survey data to get a feel for the market before getting personal.

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Elimination Period
Benefit Amount
Benefit Period
Monthly Premium

Glossary

Elimination Period

The Elimination Period (also called a waiting period) is the amount of time the insured must be disabled before benefits begin to accrue.  With Short Term Disability insurance, this is traditionally considered somewhere between zero (0) and thirty (30) days.

Benefit Amount

The Benefit Amount is what is received while on claim.  When purchased individually, it is always a recurring fixed dollar indemnity amount, rather than a percentage of earnings.  As such, fluctuations in future earnings do not require updates.

To find out how much you qualify for, you must apply.  You should apply for the maximum amount that you might want, knowing that you'll have a chance to adjust it after underwriting is complete and firm cost information is in-hand.

Benefit Period

The Benefit Period is how long benefits can last, or what can be thought of as the policy limit.  Short Term Disability insurance is characterized by benefits lasting somewhere between three (3) to six (6) months, with benefits paid weekly.  

 

For longer Benefit Periods, refer to Long Term Disability insurance

Monthly Premium

The monthly premium is your cost. 

 

The individual short term disability insurance market is dominated by what is known as Guaranteed Renewable (GR) offerings, which do not guarantee that premiums will remain level.  Somewhat confusingly, these products don't have increasing premium schedules either.  With GR policies, future premiums continue to be based on the original issue age while the insurer reserves the right to increase rates on a class basis.  Imagine the insurer saying "we can increase premiums, but we're not planning on it at this time." 

If you absolutely must have a guarantee that the premium will not increase, then your scope of products under consideration will need to widen to include Disability Income (DI), which is effectively individual long term disability insurance (90 days+)

The first payment is typically made after underwriting is complete and the policy is in-hand, for the simple reason that there is no way to know what it will cost before the insurer has reviewed your information.  It is sometimes possible to pay up front (at the time of application) based on an estimate, knowing that the refund window will remain open until at least 10-30 days after policy delivery, depending on the state.  

The process of cancellation is as simple as not paying the premium, causing coverage to lapse after the grace period expires.  It is also possible to affirmatively file for cancellation, which might be advisable in order to get a refund on any unallocated balance that may exist (if billing frequency is other than monthly).

Frequently Asked Question

Does Short Term Disability Insurance pay benefits for pregnancy? ​

Employer-based short term disability insurance does cover pregnancy, whereas it varies with individual policies.  Most individual policies cover disability due to complications, but not normal pregnancy.  Among individual policies that cover pregnancy more broadly, the way group insurance does, Elimination Periods are longer (i.e., 90 days).

In the individual marketplace, approval is subject to a review of medical history which, at a minimum, involves a questionnaire.  Medical questionnaires typically prompt for:

 

  • Current pregnancy (all insurers ask this)

  • History of pregnancy complications (some insurers)

  • Fertility treatment (some insurers)


If currently pregnant, insurers may take one of two actions: (1) issue the policy with an exclusion amendment for pregnancy and complications or (2) postpone making an underwriting decision until three months after delivery, at which time coverage is made available on the same basis as it would for any other applicant.

If the applicant has a history of pregnancy complications, complications are likely to be excluded by amendment regardless of how the pregnancy question is answered due to higher risk of complications with a possible future pregnancy.  Not all insurers ask this question; therefore, if there is a history of pregnancy complications, it will affect placement decisions.

Fertility treatment can trigger an exclusion amendment for pregnancy complications, however some carriers are more liberal on fertility treatment than others.  Not all insurers ask this question or view it as a risk.

The pre-existing condition clause is seldom relevant to pregnancy for coverage acquired in the individual marketplace because the pre-existing condition limitation does not apply to disclosed conditions.  With group coverage, the pre-existing condition limitation is absolutely relevant until the pre-existing condition probationary period expires, which is typically one (1) year after being hired, a provision which can vary from group to group.

Get Personally Relevant Cost Information

Your options must be personally curated based on:

  • your exact occupation and specialty

  • how you individually perform duties

  • scope of responsibilities

  • work environment

  • experience

  • industry

  • employer

  • employment relationship

  • education

  • earnings history

  • lifestyle, and

  • what underwriting requirements you are willing to go along with

You can provide this information by filling out an intake form (below), or just call.

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