Can I Buy Short-Term Disability Insurance on My Own?

Individual short-term disability insurance isn't available to everyone. Eligibility can depend on factors such as where you live, your occupation, income, health and the coverage available in your state.

Many people associate short-term disability insurance with employee benefits because that's where they first encounter it.

But employer coverage isn't always the only option.

Individual short-term disability insurance may still be an option.

Most people are familiar with short-term disability insurance as an employee benefit. Your employer may provide coverage, offer it as a voluntary benefit, or not offer it at all.

Individual short-term disability insurance is different. You apply for the coverage personally rather than receiving it through an employer-sponsored plan.

That can make individual coverage worth exploring if you're:

• Self-employed
• An independent contractor
• Working for an employer that doesn't offer short-term disability insurance

Individual coverage is subject to product availability and underwriting, so not everyone will qualify and available benefits can vary.

A better question than “Do I need short-term disability insurance?” may be:

What would happen if my paycheck stopped for several weeks or months?

For some people, the answer is: I'd be okay.

They may have enough accessible savings to continue paying the mortgage or rent, utilities, groceries, insurance premiums and other expenses without creating a significant financial problem.

For others, missing even a few paychecks could quickly put pressure on the household budget.

Individual short-term disability insurance may be worth exploring if you don't have coverage through work, you're self-employed, your household depends heavily on your income, or you simply don't have enough savings set aside to comfortably absorb an interruption in your paycheck.

That doesn't automatically mean you need insurance. It means you have a financial risk worth understanding.

This is an area where there's a lot of confusion.

Short-term disability insurance, maternity leave and FMLA are not the same thing.

Maternity or parental leave generally refers to time away from work surrounding the birth or adoption of a child. FMLA can provide eligible employees with job-protected leave under certain circumstances.

Disability insurance is different. Its purpose is to provide an income benefit when you meet the policy's definition and requirements for a covered disability.

Depending on the policy, certain disabilities associated with pregnancy or childbirth may be eligible for benefits. The policy provisions matter, and timing matters.

If you're considering short-term disability insurance because of a future pregnancy, it's important to explore your options before you're pregnant.

Coverage purchased after a pregnancy has already begun should not be assumed to provide benefits related to that pregnancy. Eligibility and policy provisions can vary.

This is one of those situations where understanding the coverage before you need it can make a significant difference.

For some people, yes. For others, maybe not.

If you have enough accessible savings to comfortably replace several months of income, you may decide you're comfortable self-insuring the risk of a shorter disability.

But if missing two, three or four paychecks would mean dipping into retirement savings, carrying credit-card balances, falling behind on expenses or significantly changing how your household operates, transferring some of that risk to an insurance company may be worth considering.

The question isn't simply:

“Is short-term disability insurance worth it?”

A better question is:

“What would happen to my finances if my paycheck stopped—and how much of that risk am I comfortable keeping myself?”

Once you answer that question, deciding whether short-term income protection is worth exploring becomes much easier.

Want to put a number to it? Learn how to calculate your income protection gap.

Individual short-term disability insurance isn't one-size-fits-all. What's available can depend on your state, occupation, income, age, health and other underwriting factors.

That's why StartSmart begins with a few basic questions about you rather than asking you to choose a policy on your own.

We'll review your information, identify options that may fit your situation and help you understand what the coverage does—and doesn't—do.

No pressure. No obligation. Just an opportunity to understand your options and decide whether short-term income protection makes sense for you.

Ready to see what may be available to you? Request your personalized quote.