Income continuity
Partial income during a covered disability.
Group disability insurance
Help employees stay on their feet when they can’t work.
Short-term and long-term disability insurance can replace part of an employee’s income during a covered illness or injury — a benefit that matters most when life is hardest.
- Short-term and long-term
- Employer-paid or voluntary
- Income replacement
The basics
Short-term and long-term, explained.
Disability benefits protect employees’ paychecks — and their peace of mind.
Short-term disability (STD) typically pays a percentage of weekly earnings for a limited period, such as several weeks to several months, after a short elimination period.
Long-term disability (LTD) generally begins after STD ends and can pay a percentage of monthly earnings for years, up to the plan’s benefit period.
Plans differ in their definition of disability, elimination periods, benefit percentages, and maximums. Funding can be employer-paid, shared, or voluntary — which may affect how benefits are taxed.
Needs it may address
What group disability addresses.
Recovery time
Let employees focus on getting better.
Retention
A benefit that signals long-term care for your team.
How it works
Designing a disability plan.
Choose STD, LTD, or both
Based on budget and existing benefits.
Set benefit levels
Percentage of income, maximums, and elimination periods.
Decide on funding
Employer-paid, shared, or voluntary.
Key features and important limitations
Key features
- Replaces part of income during covered disabilities.
- Group underwriting can simplify enrollment.
- Can be offered on a voluntary basis.
Important limitations
- Benefits replace only a portion of income, up to plan maximums.
- Pre-existing condition limits often apply.
- Definitions of disability vary by plan.
- Want to protect employees’ income, not just their health.
- Have a workforce without other disability coverage.
- Are building a more complete benefits package.
Questions
Common questions
Is short-term disability the same as paid leave?
No. STD is insurance that pays benefits during a covered disability, subject to the policy. Paid leave policies are separate employer programs.
Are disability benefits taxable?
It depends on who pays the premium and how. Employer-paid benefits may be taxable to employees. Consult a tax advisor for your plan.
Next step
Protect your team’s income.
Compare short-term and long-term disability options for your business.
Talk directly with Cameron McClendonLicensed Insurance Agent
Not ready to book? Send a message
Prefer email? cameron@mcclendongroup.net
General, educational information only — not legal, tax, or compliance advice. Plan availability, participation and contribution requirements, eligibility, underwriting, and costs vary by carrier, group size, industry, and location. Coverage is subject to the group policy. Employers should consult their own legal and tax advisors about plan design and compliance obligations. McClendon Benefits Solutions is the business name of Cameron McClendon, a Texas-licensed General Lines Agent (Life, Accident, Health and HMO), license #3253199.