While around 80% of private-sector employers provide Short-Term Disability Insurance for non-work-related illnesses or injuries, federal employees don’t have the same benefit through their government-provided coverage. If you’re a federal worker and become unable to work for a month or more due to a non-work-related illness or injury, you’ll need to rely on your accumulated sick leave and annual leave to cover your income during recovery. If your leave runs out before you’re able to return to work, you’ll be left without an income source.
Understanding Short-Term Disability
Short-term disability refers to a medical condition that prevents you from performing your job duties for a period of up to one year. As a federal employee, if your disability is expected to last a year or longer and you meet the service requirements under FERS/CSRS, you might be eligible for disability retirement. However, if retiring isn’t an option you want to consider, you may find yourself without financial support.
Despite several proposals presented to Congress to introduce this type of coverage for federal employees, no significant progress has been made. Consequently, many federal workers have opted to purchase private Short-Term Disability Insurance policies to safeguard against income loss.
Exploring Short-Term Disability Insurance Options
Various private insurers offer customizable Short-Term Disability Insurance policies tailored for federal employees. Depending on the policy you select, this insurance can cover a broad spectrum of temporary disabilities, including those resulting from accidental injuries, surgeries, illnesses, or mental health challenges.
Premium costs can vary, depending on the policy’s features and coverage options. Typically, coverage lasts for up to 52 weeks, and if your disability extends beyond a year, you can transition to a long-term disability policy.
How Short-Term Disability Insurance Works
Your insurance coverage starts after the elimination period specified in your policy. This elimination period is the length of time you must wait before your benefits kick in, which can range from as little as seven days to 14 days or longer, depending on the policy. The payout amount you receive also depends on the policy, with higher income coverage typically resulting in higher premiums.
It’s crucial to carefully evaluate the pros and cons of each policy feature to avoid purchasing more or less coverage than you need. For more information, consider consulting with an FRC® trained advisor who can help you compare private-sector Short-Term Disability Insurance policies and guide you toward the best choice .
