Basic of Short Term Insurance Coverage

It is always better to be prepared for the worse than to be caught off-guard. Short-term disability insurance would equip you to face an unforeseen situation in your life like an injury or illness, which could keep you out of work for a while. Through a disability insurance coverage, you will get paid a part of your income, if you are unable to work for a period of time because of being rendered unfit to do so.

Who Pays for Short Term Disability Insurance in New Jersey

Temporary Disability Benefits Law directs the employers in the state to provide short term disability insurance in NJ to their employees. The insurance policy could be sponsored by the employer partially or fully or the insurer himself would have to pay for it. You can take more than one disability insurance policy that would cover not more than 75% of your income. Tax may or may not be deducted from the insurance benefit, depending on whether the premiums were paid with after-tax or before-tax dollars.

What are the benefits of short term disability insurance in New Jersey

Under this insurance coverage, employees can get benefits for a maximum of 26 weeks every benefit-year. In case of normal pregnancy, benefits can be collected for up to four weeks before and six weeks after child-birth. The benefits could be permitted for a longer period, if the employee has had a cesarean section or has some specific complications related to her pregnancy or some other disability. The maximum amount receivable by the insurer depends on the terms and conditions of the specific policy.

When do the benefits kick in?

The employee can start getting the benefits after one to 14 days of him suffering an injury or sickness that leaves him unable to work. The time duration of the short term disability insurance NJcould be anywhere between 9 to 52 weeks, depending on the specific policy terms. There is a possibility that the employees may have to use the sick leaves before the benefits of the disability insurance kick in. There are some other terms that need to be fulfilled to avail these benefits:

• The employee should have worked for the employer for a certain amount of time before the benefit kicks in.

• This facility is for full-time employees, usually who work for 30 hours or more per week

If you are working in New Jersey then you are liable to get temporary disability benefits as per the law of the state from your employer.

Author’s Bio: The author of this article is a blogger. This write-up is about the fundamentals of short-term disability insurance.

About This Author

EZTDB Joined: August 14th, 2019