Short-term disability.
In plain English
Short-term disability (STD) insurance pays you a portion of your income, often around 60% to 70%, while you are temporarily unable to work because of a non-work injury, illness, surgery, or childbirth recovery. Benefits usually start after a short waiting period of a week or two and last anywhere from a few weeks up to about six months. Many people get it through their employer. It is meant to bridge the gap until you recover or until long-term disability coverage takes over.
01Why it matters
Most households cannot cover even one month of bills without a paycheck, so a covered surgery or a difficult pregnancy can drain savings fast without this coverage in place.
02The math, step by step
You earn $4,000 a month and need eight weeks off after surgery. A short-term disability policy that replaces 60% of your pay sends you about $2,400 a month during recovery, after a one-week waiting period you cover on your own. The exact percentage and waiting period depend on your specific plan.
03What this is NOT
Short-term disability is not the same as a few paid sick days, and it is not long-term disability. It covers a temporary stretch of weeks to months, then ends; long-term coverage picks up for disabilities that last years.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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