Short-term disability (STD) replaces a slice of your paycheck for a limited window—often weeks to a few months—when illness or injury keeps you off the job. It is not health insurance, not workers’ comp for every situation, and not a substitute for long-term disability (LTD). For the STD-vs-LTD map, start with Disability insurance basics. Work injuries: Workers’ compensation basics.
Carriers and group administrators you may see on HR portals include MetLife, Unum, The Hartford, Lincoln Financial, and The Standard—terms still control, not the logo.
Waiting periods and benefit math
| Term | What it means |
|---|---|
| Elimination / waiting period | Days you wait after disability starts before benefits pay (often 0–14 days for STD) |
| Benefit percentage | Share of covered wages (commonly ~50–70%) |
| Benefit duration | How long STD can pay (e.g., 11–26 weeks) before LTD or nothing |
| Definition of disability | Own-occupation vs broader tests; partial disability rules vary |
| Taxability | Employer-paid premiums often make benefits taxable |
State programs (for example, California SDI, New York DBL) may sit beside employer STD—read both so you do not double-count income.
Health premiums and deductibles continue while you are out (Health insurance deductibles). Job loss can trigger COBRA separately from disability income.
Worked example: 7-day wait, 60% benefit
Alex’s take-home pay is $4,200/month (~$140/day). Employer STD pays 60% of pre-tax base after a 7-day elimination period for up to 12 weeks. Benefits are taxable in Alex’s case; after tax Alex nets roughly 50% of prior take-home.
| Phase | Income | Gap vs normal take-home |
|---|---|---|
| Days 1–7 | Sick leave / PTO if available | Use leave or cash |
| Weeks 2–12 | STD ~50% of prior take-home after tax | ~$2,100/month short |
| After week 12 | LTD if any, else $0 from STD | Size cash and LTD now |
Alex keeps at least one month of expenses in an emergency fund aimed with How to pick an emergency fund target so the waiting period plus the partial-pay months do not land on a credit card.
Gaps STD does not fill
- Full wage replacement (the % cap is intentional)
- Medical bills (health plan / HSA / FSA)
- Permanent income loss after the STD duration (that is LTD or savings)
- Job loss from layoff (unemployment insurance)
- Death benefit for dependents (Term vs whole life)
Employer group vs individual STD
Group STD is often inexpensive or employer-paid but may end when you leave the job and may define disability narrowly. Individual policies can be portable with stronger definitions—at higher cost and with underwriting. Shop while healthy.
STD replaces part of your paycheck while you cannot work; a critical illness check is a one-time lump sum only if the diagnosis matches the policy list.
Checklist
- Find the SPD: waiting period, %, max weekly benefit, duration, tax treatment.
- Calculate cash needed for the elimination period + partial-pay months.
- Confirm whether a state disability program applies.
- Note the handoff date to LTD (if any).
- Keep HR claim contacts and required doctor forms in one folder.
- Re-check coverage after any job change.
State-run SDI/TDI payroll programs vs private short-term disability: State disability insurance basics.
State paid family leave programs vs private short-term disability for own illness: Paid family leave insurance basics.
Educational only. Not insurance, tax, or legal advice. Not an offer of any policy. Plan documents and state rules control.