No laws require employers to offer long-term disability (LTD) coverage, but about half of large and mid-sized employers offer it to their workers. When you receive employer-paid disability income, you must pay federal and state income tax on the benefits, unless your company pays it for you.

Five states — California, Hawaii, New Jersey, New York, and Rhode Island — and Puerto Rico require employees to receive short-term disability coverage. Four of these states (California, New Jersey, New York, and Rhode Island) also require paid family leave benefits.

If your claim is approved, you will have up to 125 workdays of short-term disability coverage. Up to six weeks of post-partum income replacement following a normal delivery or C-section. Disability benefits will be increased to 80 percent of pre-disability income for a catastrophic condition.

Most employees qualify for short-term disability insurance. They just need to meet the criteria made by the insurance provider. The requirements to get short-term disability insurance vary. Many insurance providers have requirements about the employee’s minimum earnings and the length of time worked at the business.

Employees may be able to file for short-term disability if a medical professional diagnoses them with an anxiety disorder, depression or other mental illness due to that stress.

To qualify for short-term disability benefits, an employee must be unable to do their job, as deemed by a medical professional. Medical conditions that prevent an employee from working for several weeks to months, such as pregnancy, surgery rehabilitation, or severe illness, can qualify to receive benefits.

If you stop working again due to disability, you must file a new claim for SDI, and re-establish your eligibility for benefits as of the date of the new claim. If you are eligible for SDI as of the date of your new claim, you are entitled to a new benefit period of up to 52 weeks.

Short-term disability plans pay benefits based on your pre-tax income. Policies vary but typically pay between 40 percent and 70 percent of your pre-tax income. To calculate your benefits, multiply your weekly gross income by the percentage of income your policy pays.

Typical benefit periods for short term disability are three months, six months, one year, and two years. The longer you receive payments, the more you pay in premium. Elimination period. All disability insurance policies include a waiting period, often referred to as an elimination period.

Is short-term disability insurance worth it? Short-term disability can be a financial safety net for your family when you need it most. If you work for a living and your household depends on your income, short-term disability could be worth the expense, if you can afford the premium. Your earning ability is valuable.

60% coverage Take your annual salary and divide by 52 (weeks).

The average cost of disability insurance is typically between 1 percent and 4 percent of your annual income. Another rule of thumb is that you should expect to pay between 2 percent and 6 percent of your policy’s monthly benefit amount in premium.