Do I need a short-term disability policy?

For many employees: Yes.

The financial impact of a medically necessary leave from work, stretches beyond just receiving continued pay while you are medically unable to work. Medically necessary leaves are often accompanied by increased health care costs, travel expenses, and even at times, increased household expenses.

I have sick time, why do I need another policy?

Most employees would financially benefit from the short-term disability policy during a medical leave, however, everyone’s financial needs vary. Review the information to see if its right for  you.

During their work career, many people will experience a need for a medically necessary leave of absence. short-term disability (STD) coverage is offered to bridge the gap for individuals that do not have sick time accumulated or do not have enough time accumulated to insure their paycheck until long-term disability (LTD) eligibility.

At MSU most full-time employees do not have enough banked sick and/or vacation time to cover the 6-month LTD elimination period.

Individuals unable to work because of an illness or those who sustained an off-the-job injury could receive benefits under the STD plan. That means, even if you have ample sick/vacation time, you can still receive benefits under the STD plan that could help with expenses.

What makes this plan different from other Short-term disability  plans?

• Allows employees to choose amount of coverage
  • Rather than coverage at 60% of your salary, the plan allows you to select a weekly coverage amount up to the max listed on the rate sheet for your salary range.
  • Plan provides flexibility and choice, both with coverage and budget
• Payment, based on medical necessity, up to employee’s ability to return to work or when long term disability eligible.
  • For medically necessary leave, maximum coverage of 26 weeks of coverage
  • Benefit payment is weekly, and the amount is non-taxable
• 2 plan options to choose from
  • Option 1 has 2-week elimination for illness and injury
  • Option 2 has first day coverage for off-the-job injury and 1 week elimination for illness
• Guaranteed issue during open enrollment means no medical questions to answer to obtain the policy
  • Complete open enrollment between November 1 and December 1
• Does not offset other income
  • Benefits paid for covered accident/illness regardless of sick and/or vacation time to supplement your normal income
  • Pay is paid to you on a weekly basis, which means it can be used however you see fit.
• Pre-existing conditions have minimum allowed amount of 4 weeks of coverage
  • Pre-existing limitation does not apply after 1 year of coverage.
  • If leave is related to pre-existing condition plan still offers pay
    • Option 1: 2 week elimination (period of time before the policy pays)/ 2 weeks pay
    • Option 2: 1 week elimination/ 3 weeks pay

Learn more about life insurance and other benefits during our virtual benefit fair. Enroll or make changes to short term disability during Open enrollment (Nov 1- Dec 1).

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