It is mandated by the government in certain states that employers have to provide temporary disability insurance to their employees. You as an employee may not realize the importance of this insurance policy but when you meet with a tragedy that renders you incapable of coming to work, it is then you understand how valuable temporary disability insurance can be for you. This policy will pay you for the time you are off work due to an injury or illness. Keep in mind that there are public disability insurance and private disability insurance in New Jersey.
Also, there are short term disability insurance and long term disability insurance. As you can make out from the names itself, long term policies last for several years while short ones last for less than a year. But if you are off work for a short period of time only, then temporary disability insurance is perfect for you. However, it is essential for employees to keep in mind that this policy will not replace your salary. This policy is meant to cover only your condition that forced you to stay out of work for some time. You can think of it as a cousin to workers’ compensation, provided to you by the government through your employer.
Becoming Eligible For Temporary Disability Insurance
When it comes eligibility, you won’t face much trouble with this policy. If your state provides this insurance policy, you just need to be out of work due an illness or injury you acquired outside of work. However, if you get injured or ill while doing work, you will not go for temporary disability insurance but instead workers’ compensation. When we say the word ‘disability’, keep in mind that you do not need to be fully disabled in order to reap the benefits of temporary disability policy. Here, disability means you will be off work for some time.
Temporary Disability Insurance Vs Short Term Insurance
We can say that temporary disability insurance is a sort of short term disability insurance. But one clear different between the two is that the former is offered by the state and the latter can be take from a private company. If you want short term policy, you can get it through your company’s employee benefit program. While you do not pay premiums for temporary disability insurance, you do have to pay premiums for short term policy. Since you are paying premium for the latter, it is obvious you get more benefits with short term policy.
There are more benefits to buying private temporary disability benefit policies. Earlier, buying these private policies was not possible but now you can easily get them. There are companies online that specialize in helping people get private policies. You can get in touch with them if you want a private temporary disability benefit policy.