Short-Term vs. Long-Term Disability Insurance: What's the Difference?
Written by Montiae Couse · Last reviewed
Short answer
Both types of disability insurance are designed to replace part of a person's income when illness or injury keeps them from working. The main difference is time. Short-term disability is generally meant for shorter absences and usually starts paying sooner. Long-term disability is generally meant for disabilities that last much longer and usually has a longer waiting period before benefits begin. Exactly how long each lasts, when it starts, how much it pays and what counts as a disability are set by the specific policy or plan, so two policies with the same name can work very differently.
What you need to know
- Short-term disability generally covers shorter absences; long-term disability generally covers longer-lasting disabilities.
- Each policy defines its own waiting (elimination) period, benefit period, benefit amount and definition of "disability."
- Disability insurance generally replaces part of income, not all of it. The amount and limits are set by the policy.
- Coverage can come from an employer, a union or trust, a voluntary workplace benefit the employee pays for, or an individual policy.
- Social Security disability benefits are separate. According to the Social Security Administration, Social Security pays only for total disability, not partial or short-term disability.
- In Washington, Paid Family & Medical Leave is a separate state program, not a private disability insurance plan.
What is short-term disability insurance?
Short-term disability insurance is designed to replace part of a person's income for a limited period when a covered illness or injury keeps them from working. Depending on the policy, short-term disability may apply to qualifying absences involving an illness, injury or recovery from surgery. The policy determines what is covered.
The policy sets how soon benefits can start after the disability begins, how long they can continue and how much they pay. These terms vary from policy to policy.
What is long-term disability insurance?
Long-term disability insurance is designed for disabilities that last much longer. It typically has a longer waiting period before benefits begin, and benefits may continue for an extended period set by the policy.
The Washington Office of the Insurance Commissioner notes that each individual policy defines the terms "long-term" and "disability." How a policy defines being unable to work can matter as much as how long it pays.
Short-term vs. long-term disability at a glance
- Purpose
- Short-term disabilityPartial income during shorter absences caused by a covered illness or injury
- Long-term disabilityPartial income during longer-lasting disabilities
- How long benefits may last
- Short-term disabilityA limited period set by the policy
- Long-term disabilityAn extended period set by the policy, which can be considerably longer than short-term coverage
- When benefits may begin
- Short-term disabilityGenerally after a shorter waiting (elimination) period set by the policy
- Long-term disabilityGenerally after a longer waiting (elimination) period set by the policy
- Income replacement
- Short-term disabilityPart of income, up to the percentage and limits in the policy
- Long-term disabilityPart of income, up to the percentage and limits in the policy
- How coverage may be obtained
- Short-term disabilityEmployer-paid, employee-paid voluntary, shared-cost, union/trust or individual
- Long-term disabilityEmployer-paid, employee-paid voluntary, shared-cost, union/trust or individual
- Role in income protection
- Short-term disabilityHelps with the earlier, shorter part of a time away from work
- Long-term disabilityHelps if a disability continues well beyond a short absence
This table describes general differences only. The specific policy or plan controls eligibility, definitions, waiting periods, benefit amounts, benefit duration, exclusions and how other income is treated.
When do benefits start, and how long do they last?
Disability policies usually include a waiting period between the start of a disability and the date benefits begin. The Office of the Insurance Commissioner describes this as the waiting period, also called the elimination period. Short-term policies generally have shorter waiting periods than long-term policies, but the length is set by each policy.
How long benefits can be paid is also set by the policy. Benefit periods vary by policy.
Can someone have both?
Yes. Some employers offer both, and some people combine workplace coverage with an individual policy. When someone has both types of coverage, short-term disability may cover an earlier period of a qualifying disability, while long-term disability may begin later if the person continues to meet that policy's requirements. Each policy has its own eligibility rules, so qualifying under one does not mean qualifying under the other.
What if someone has neither?
Without short-term or long-term disability coverage, a person who can't work may rely on savings, paid time off, help from family or public programs they qualify for. Public programs have their own rules. For example, the Social Security Administration states that it pays only for total disability and does not pay benefits for partial or short-term disability.
How Washington Paid Leave fits in
Washington workers may also be eligible for Paid Family & Medical Leave, a state program run by the Employment Security Department. It is separate from private short-term and long-term disability insurance and has its own eligibility rules, limits and waiting week.
For employers reviewing disability coverage
Employers looking at this area often start by understanding what employees already have, whether short-term and long-term coverage connect, and whether employees understand the difference. Seeing how a missed paycheck could affect someone is a useful starting point.
Common questions
Is long-term disability the same as Social Security disability?
No. Long-term disability insurance is private coverage through an employer, union, voluntary benefit or individual policy. Social Security disability is a federal program with its own definition of disability. According to SSA, it pays only for total disability.
Does disability insurance replace a full paycheck?
Generally not. Policies usually replace part of income, up to the percentage and limits stated in the policy.
Is Washington Paid Leave a type of short-term disability?
No. Washington Paid Family & Medical Leave is a state program run by the Employment Security Department. It is not the same as a private short-term disability insurance plan.
Sources
- Washington Office of the Insurance Commissioner — Consumer insurance glossary ("Disability income insurance," "Elimination period," "Long-term disability," "Waiting period")
- Social Security Administration — What is meant by "unable to do any substantial work?"
- Washington Employment Security Department — How Paid Leave works
Coverage depends on eligibility, policy terms, applicable programs and individual circumstances.
Educational information only, not legal or tax advice. Check official sources for current program rules.
Written by Montiae Couse
Licensed Washington Insurance Producer · Life & Disability · WAOIC #1382988 · Verify license
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