What is Short-Term Disability Insurance Premium?

Short-term disability insurance premium is the amount of money you pay to an insurance company for coverage that will provide you with income replacement if you become temporarily disabled and unable to work.

The premium for short-term disability insurance can vary based on many factors, including the level of coverage you select, your age, occupation, health status, and any pre-existing conditions you may have. Generally, premiums for short-term disability insurance are less expensive than long-term disability insurance because the coverage period is shorter.

Short-term disability insurance is typically offered as a voluntary benefit through your employer, although you may also be able to purchase coverage independently. Depending on the arrangement, the premium cost may be shared between you and your employer or solely your responsibility.

How Much Does Short-Term Disability Cost?

The cost of short-term disability insurance can vary widely depending on several factors.

Here are some factors that can affect the cost of short-term disability insurance:

Age: Younger individuals may pay less for short-term disability insurance than older individuals.
Gender: Women may pay slightly more than men because they tend to have more health issues.
Health: You may pay more for coverage if you have a pre-existing condition or a history of health problems.
Occupation: Certain occupations may have higher premiums due to increased risks of injury or illness.
Coverage amount: The amount of coverage you choose will affect your premium. Typically, short-term disability policies replace a percentage of your income up to a certain limit.
Elimination period: The elimination period is the time between the date you become disabled and the date you begin receiving benefits. The shorter the elimination period, the higher your premium will be.

Based on these factors, the cost of short-term disability insurance can range from a few dollars to over a hundred dollars per month. On average, you can expect to pay around 1-3% of your monthly salary for short-term disability insurance.

Also, See: Long-Term Disability Insurance Premium