When Do Short-Term Disability Benefits Start?

Ken Latus is a vice president of Insurance Solutions at Northwestern Mutual.

When you’re faced with a sudden disability, the last thing you want to worry about is money. Knowing you’ll have income to help pay your bills allows you to focus on recovery and getting back to work. Enter short-term disability insurance—a benefit that’s typically offered through your employer. This insurance is designed to help with this exact situation. It’s not something that people tend to think much about until they need it.

Whether you’re in that situation now or just making sure you’re covered, we’ll help you learn a little more about short-term disability insurance and how it works.

The basics of short-term disability insurance

Short-term disability (STD) insurance is a vital financial safety net that pays benefits for a few weeks or months. It complements long-term disability insurance, which covers extended periods of disability, and also works with other sources of income to replace a portion of what you were earning prior to becoming sick or hurt and unable to work.

To get short-term disability benefits, you need to file a claim that will be reviewed. If approved, there is usually a short waiting period before benefits begin (typically one to 14 days), depending on the cause of your condition. The STD benefits you receive may range from 60 percent to 100 percent of your regular earnings before your disability, and they are paid to you each week. This money helps cover your living expenses and additional medical care, allowing you to focus on recovery and keep your finances on track.

Short-term disability insurance can cover a wide range of conditions and situations, including:

• Mental or physical illnesses: Substance abuse, depression, cancer or debilitating conditions and complications resulting from disease or events like a stroke, surgery or Lyme disease. Nearly eight out of 10 claims here at Northwestern Mutual are the result of an illness.¹
• Accidental injuries: Back or other musculoskeletal conditions resulting from non-work-related accidents.
• Pregnancy and maternity leave: While not all policies cover pregnancy and maternity leave, many do.

It’s good to understand the specifics of your policy because coverage can vary significantly among insurers. If your employer provides coverage, get a document from your HR department (or their contact) called the “summary plan description.” It outlines your STD benefits and helps you understand how your coverage works. A financial advisor or your employer’s STD plan sponsor can also provide valuable information.

When short-term disability benefits start: The elimination period

The elimination period, or waiting period, is the number of days you must be disabled before your benefits start. For STD, this is typically seven or 14 days after your disability begins. Some policies have provisions that waive the elimination period for treatment of cancer, overnight hospital stays or outpatient surgeries, providing quick financial relief.

How to file a claim for short-term disability benefits

To receive short-term disability benefits, your best guide is following the procedures outlined in your summary plan description, which is available through your HR department or their contact person. For example, this typically involves contacting your work manager and the disability case manager (or the person designated by the plan administrator) on the first day of your absence (or as soon as possible). You’ll also need to complete a claim form and submit medical proof of your disability.

Completing all required documentation accurately can help to keep the claims process moving smoothly. A claims analyst will review the information and may request follow-up details.

If you’re uncertain about your coverage or how it works, consider talking with your Northwestern Mutual financial advisor for personalized guidance. They can help you understand your current coverage and figure out whether you have enough.

Disability insurance policies contain exclusions and limitations that could affect a member's benefits or coverage. For costs and more complete details, consult your group plan administrator or a Northwestern Mutual financial representative, as applicable.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) (life insurance, disability insurance, annuities, and life insurance with long-term care benefits).