What is short term disability coverage? Part 1

One extremely important point to keep in mind is that if you suffer from a pre-existing condition, the best time to enroll in short term disability insurance is during the initial enrollment period. Why is it better to enroll at that time rather than another? Because your medical history is not subject to medical underwriting; the insurance policy is being issued to the group instead of just an individual. If you don't sign up during the initial enrollment period, your pre-existing condition may limit or delay the use of coverage. Simply put, enrolling during the initial enrollment period qualifies you for every potential disability. As they say, "Timing is everything!" "Timing is everything" when it comes to this aspect of insurance.

Throughout this article, we have mentioned pre-existing conditions a few times. So, pre-existing conditions are or what? Any medical condition for which "medical care" was received three to six months prior to the effective date of coverage is referred to as a pre-existing condition. Just about every single STD policy has a pre-existing condition, exclusionary period. A pre-existing condition will be covered after the pre-existing exclusionary period ends, but it will not be covered before them.

You must enroll during the initial enrollment to meet the pre-existing conditions exclusionary period for short term disability coverage (which can last between six and twelvemonths.) To meet the pre-existing conditions exclusionary for short term disability coverage (which last between 12 and 6 months), you must enroll during the initial enrollment. Additionally, you must remain an employee (or member of a professional group) during the service wait period and the exclusionary period. Upon the passing of the exclusionary period, you will then be covered for any pre-existing disability. Essentially exclusionary period is to protect employers from hiring previously injured employees, having those employees then claim that they were injured again and have the employer pay out benefits.

Does short term disability insurance cover health coverage?

Many people think that disability insurance covers health coverage. However, STD provides income replacement, but since it is paid to you, you could use it for health expenses if need be. However, in employer-sponsored coverage, your employer may use your eligibility for short term group disability to determine continued eligibility for other benefits such as health and life coverage. Basically what this means is that if you suffer from a short term disability that would severely affect your future health, they may choose to raise your health benefit premiums.

Ed Brancheau, aka The Insurance Egghead (http://www.insurance-egghead.com), guides businesses, families and individuals toward finding short term disability (http://www.insurance-egghead.com/short-term-disability.html). His website, The Insurance Egghead, has pages and pages of free guides, articles and advice about every type of insurance: health, dental, vision, accident and life.