California Short-Term Disability (STD) Insurance

Program Overview

Short-Term Disability Insurance has been set up in California as private insurance. It is meant to cater to those individuals who sustain an injury or illness that prevents them from working. It provides them with income during that duration to help make sure that they do not face any further issues. It does this by providing you a certain percentage of your income for a set period of time. This allows you to gain stability during a time of need in your work life. This Insurance is provided by employers themselves but can also be availed individually. Employers mat add in group STD policies as a part of their benefits packages. But an individual can also simply reach out to an insurance agent if they wish to avail these benefits.

Different features are associated with different STD policies. Therefore, to find out the specifics of your plan, you must contact the appropriate parties. This can be the Human Resources department in your organization or your insurance agent. It can be said that STD policies do have general features but when you go in-depth, you find differences. This can be seen from the policies and their differences stated below:

Definition of Disability: there are two ways to define disability in a workplace according to the STD policies. One policy defines it as an inability to work at your own job. This is known as “own occupation” definition. On the other hand, there is “any occupation” definition which is also cheaper. It states that a disability is an inability to work in any job.

Service Wait: This policy is in regards to how long an individual has worked at the company. Some employers choose to offer the STD benefits only if the employee has worked for them for a specific duration. This can be one year or more. In other policies, employers choose to give higher benefits to people who have worked longer. This concept is also known as the minimum service requirement.

• Waiting Period: longer waiting periods can result in cheaper policies. Waiting periods can be up to 180 days. This waiting period differs according to the different types of disabilities.
• Benefit Rates: These can vary according to the company but are usually between 40% and 70% of your normal earnings. A higher rate requires a high premium, therefore it depends on that. Certain policies also change the benefit rates during the period of receiving the benefits.
• Partial Disability: There are some plans which allow part-time work whilst also providing the employee with benefits. This is known as a “residual” or “loss of earnings” benefit.
• Benefit Periods: STD insurance involves policies that bring in the concept of work on a trial basis. The trial period can differ according to the company and its requirements. During this trial, it is tested whether or not you should keep receiving the benefits.
• Transition to Long-Term Disability Insurance: The benefit period determines the transition from an STD plan to an LTD plan. If by the end of the period, the person still requires the benefits to function then this transition is automatic.
• Changes to your premium: There are two policies in this regard as well, namely: non-cancelable policy and guaranteed renewable policy. The former means that the insurance company cannot change your premium or benefits whilst the latter is more flexible. However, it does take into account the change for an entire group of policyholders instead of just the individual.
• Exceptions: Most policies of the STD plan do not cover disabilities that are caused by

• Suicide attempts
• Drug abuse
• War
• Attempts to commit a crime
• Pre-existing conditions
• On-the-job injuries that are covered through the workers’ compensation insurance

How to Apply

The state of California offers the State Disability Insurance program to most of its employees. However, if your employer is not a part of this program, they have to offer a voluntary plan. This voluntary plan is an STD policy as discussed above. You would be expected to sign up for the plan during an initial enrollment period. If you don’t sign up then, you’ll have to undergo a medical underwriting. This will confirm your medical condition and its requirements. Similarly, if your employer does not offer any STD plan, you can buy an individual policy. You will need the medical underwriting with which you will approach a reputable insurance provider.

Once you have signed up, and sustain an injury, contact the appropriate party to ensure timely completion of application.

For Further Information

Short-Term Disability (STD) Insurance is not a government benefit, and it is not connected to any public benefit program. It is private insurance coverage that you get through a private company. The state program is called State Disability Insurance (SDI). It covers most people in California who are working. If you become disabled and are unable to do your job, you may be able to get SDI benefits, whether or not you also get STD.

Also Discover: Maryland Children’s Health Insurance Program (MCHP)