Short Term Coverage

Several states offer short term coverage for disabilities. It can last up to a full year and is meant to replace wages lost due to a disability. Short term coverage for disabilities can be obtained either through a group or individually. Employers, professional groups, and associations can offer short term coverage for disabilities, but individual coverage can be bought directly from an insurance broker based upon medical underwriting.

If short term coverage for disabilities is offered from an employer, the individual works for a specified time (the service wait) prior to eligibility. If offered by a professional group or association, the individual must be a member for a set period of time before becoming eligible for short term coverage.

Since short term coverage for disabilities through individual policies is based on medical underwriting, you will likely be eligible for one if you have not had any medical treatment for a potentially disabling medical condition for the last 10 years. This includes prescription medications and physician consultations.

Be aware that if you have employer-sponsored short term coverage, you must meet the active work requirement. This means that you have to work a certain number of hours per week to become and stay eligible for benefits. Professional groups and associations will have their own specific requirements for you to be eligible for short term coverage.

Short term coverage for disabilities provides monthly income replacement that’s either a percentage of gross pre-disability pay or a specified dollar amount. If you have a pre-existing condition, initial enrollment becomes the best time to enroll for short term coverage. During this period, your medical history might not be subject to medical underwriting. However, pre-existing conditions might limit or delay the use of short term coverage.

What is a pre-existing condition?

It’s any medical condition for which medical care was received three to six months prior to the short term coverage’s effective date. Some forms of short term coverage may have pre-existing conditions exclusionary periods in which the individual’s prior medical conditions will not be covered by the policy. After this period ends, however, the condition becomes covered.

You meet a pre-existing conditions exclusionary period for short term coverage for disabilities by enrolling during initial enrollment, continuing member in your group (employer, professional group, association), and remain enrolled in short term coverage during the service wait and pre-exiting conditions exclusionary period. A pre-existing condition exclusionary period can last between 6 to 12 months.

Short term coverage for disabilities does not provide health coverage as well. Mostly, it provides wage replacement. There are short term coverage insurance policies you can invest in for health benefits.

Short term coverage for disabilities lasts for 12 months. If you have health insurance coverage, you are responsible for all costs. With group coverage, you may be responsible for no cost, a percentage of the cost, or a set premium. If sponsored through your employer, you may be responsible for an amount that is above what your employer chooses to pay.