The Facts

• According to a 2007 Commerce Clearinghouse Annual Absence Survey, personal illness or calling in sick was an employee's number one reason (34 percent) for missing work. Employers who participated in a Hewitt Associates survey reported that eight in every 100 employees takes a leave of absence that averaged 42 days. That represents a $13 million loss in annual productivity. The most common medical conditions reported on short-term disability claims are back sprains, fractures and repetitive-motion strains, according to a MetLife study. People who are looking to apply to Social Security for benefits will not be able to, as the agency doesn't provide coverage for short-term disability.
  
  

Disabilities

• Short-term disabilities are injuries and illnesses that keep an employee from work for several days up to months. These conditions are not long term and are not life altering or life threatening. The incidents that caused the medical condition must have occurred outside of work. However, not all short-term disabilities are illnesses or injuries. Maternity leave also qualifies as a short-term disability. In fact, 30 percent of submitted short-term claims are maternity related.
  
  

Disability Insurance

• An employee can be compensated through insurance for the time missed due to a short-term disability. Short-term disability insurance is a policy that pays the insured a percentage of his earnings for a period of time until he is able to get back to work. This may be purchased through an insurance company; however, an employer may provide it as part of a benefits package. An insured can receive benefits immediately if the disability is an injury or a maternity issue and eight days or later if it's an illness, depending on the insurer's terms and conditions.
  
  

Misconceptions

• People may overlook getting disability insurance when they purchase policies to protect their assets or health. Those who do pass on disability coverage may think that it is a waste of money. However, one in every seven workers suffers a disability lasting more than 1 week. Also, 3 in 10 workers age 20 and up will become disabled at some point before retirement. The average cost of a short-term disability plan is $197 a year. That may be a small price to pay if you're standing to lose 100 percent of your income.
  
  

Warning

• A short-term disability insurance plan is not a requirement but not having one puts the employee at risk for serious financial problems. If an employee is unable to work, household and medical bills will pile up. Forty-eight percent of foreclosures are caused by a disability. A person who lives paycheck to paycheck could experience immediate financial problems if he was to miss days of work. He may also deplete his savings before returning to work if the disability lasts longer than anticipated. According to a Census Bureau survey, a typical 35-year-old with a $50,000 salary has about two months of expenses saved up, and most disabilities last 90 days or longer.