Short-Term vs. Long-Term Disability Insurance

Disability insurance protects your income when life throws a curveball—like an injury or illness that keeps you from working. But did you know there are two main types: short-term and long-term? Each serves a unique purpose, and understanding their differences can help you pick the right coverage. At KP Insurance Solutions, we’re here to guide you through these options so you can build a plan that fits your life.

Short-term disability insurance is like a quick-response team. It starts paying benefits soon after a disability—often within 1-14 days—and lasts for a short period, usually 3-6 months. It’s great for temporary setbacks, like recovering from surgery or a minor accident. For example, if you’re sidelined for two months after breaking your arm, short-term coverage might replace 60-70% of your income. It’s a common perk through employers, but you can also buy it on your own.

Long-term disability insurance, on the other hand, is your long-haul safety net. It kicks in after a waiting period (typically 90-180 days) and can pay benefits for years—or even until retirement. It’s designed for serious, ongoing conditions, like a chronic illness or severe injury. Benefits usually cover 50-60% of your income, providing stability during extended absences. We’ve seen clients rely on it after life-changing events like car accidents, keeping their finances intact.

So, which one’s right for you? If you’ve got savings to cover a few months, long-term might suffice. But for a tighter budget, combining both ensures no gaps. Check out the table below for a quick comparison, and if you’re unsure, KP Insurance Solutions can help you tailor a plan that protects your income—short-term, long-term, or both!

Quick Comparison

Feature	Short-Term Disability	Long-Term Disability
Waiting Period	1-14 days	90-180 days
Coverage Duration	3-6 months	Years, often until retirement
Benefit Amount	60-70% of income	50-60% of income
Typical Use	Temporary setbacks	Chronic or permanent conditions