Posted: September 3rd, 2015

Business and Public Law.

Long Term and Short Term disability policies (contracts)

Both young and old students misunderstand short and long term diability. A disability policy is a contract between your employer and the insurance company. If you buy your own disability policy, it is a contract between you and the insurance company. All disability policies are a legal contract and the benefits vary from company to company. For example,a typical long term disability policy may state that disability payments will not begin until after 6 months of disability and it may only pay 66% of your salary less any social security received.

Get your parents or HR department to help you with answering the following questions and then write an informative paper about what you learned and some advice to others.

Use either you, your partents or a friends disability information. What is the definition of short term and long term disability? When do benefits begin?

Now, presume that Mary makes $40,000.00 gross salary. Mary is involved in a serious car accident on July 1, 2015. Under your policy, when do her short term and long term benefits benefits begin and how much will she receive from her employer? Now assume 3 months later, the Social Security administration agrees to pay her $800.00 per month in social security disability. What does the policy say? Does it say that her benefits from the company insurer will now decrease by $800.00? Did it surprise you that if you are involved in a bad accident, you will not receive your full salary under short term or long term disability? If you are barely covering your bills now, or want to make sure someone can take care of you what should you do to make sure that you are covered in case of an accident (discuss increasing your payroll deduction to purchase additional coverage or obtain a private disability policy to cover the gap).

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