Asset-Based Long-Term Care

Protect Your Paycheck in the Short Term

What Short-Term Disability Insurance Is Designed to Do

Short-term disability insurance (STD) replaces a portion of your income when you’re temporarily unable to work due to illness, injury, or recovery from a medical event. It’s meant to cover the initial phase of a disability—typically from the end of sick leave up to 3 or 6 months.

Common uses include recovery from surgery, injuries that heal within weeks or months, pregnancy and childbirth recovery, or short-term illnesses that keep you off the job.

How Short-Term Disability Coverage Works

While details vary by plan, most short-term disability policies share similar features:

A short-term disability plan might pay $600 per week for up to 12 weeks after a 7-day waiting period if you’re unable to work due to a covered condition.

Short-Term Disability vs an Emergency Fund

If you follow a Ramsey-style financial plan, you may already have an emergency fund—and that’s a great start.

• If you have 3–6 months of expenses saved, you might be able to self-insure a short absence from work.
  
• However, using savings for income replacement can drain the very fund meant for other emergencies.
  
  

Short-term disability insurance can act as a bridge, allowing you to recover without wiping out your savings. It’s not always essential—but for some people, it provides valuable peace of mind.

Who Short-Term Disability Insurance Makes Sense For

STD coverage is often helpful if you:

• Have little or no paid sick leave
  
• Live paycheck to paycheck or have limited savings
  
• Are self-employed and can’t afford any income interruption
  
• Want coverage for planned maternity leave
  
• Prefer to preserve your emergency fund for other surprises
  
  

Many employers offer STD as part of a benefits package. Individual policies exist but are usually considered selectively and often paired with long-term disability planning.

Pregnancy and Maternity Coverage

Short-term disability insurance commonly treats childbirth as a qualifying disability:

For families without paid maternity leave, STD coverage can effectively create a paid recovery period, helping offset lost income during a critical time.

Coordinating Short-Term and Long-Term Disability

Short-term disability works best when coordinated with long-term disability (LTD):

• STD covers the first weeks or months
  
• LTD takes over for extended disabilities
  
  

We help ensure elimination periods and benefits align so there are no income gaps. If your employer offers STD but not LTD, the priority is often securing long-term protection individually.

Important Things to Know

• Texas and Oklahoma do not provide state short-term disability benefits
  
• Coverage is optional unless offered through an employer
  
• Individual STD policies are situational—sometimes helpful, sometimes unnecessary
  
• The real financial risk usually lies in long-term disability, not short-term interruptions
  
  

Our approach is practical and honest—we’ll tell you if STD makes sense for you, or if your dollars are better spent elsewhere.

Is Short-Term Disability Insurance Worth It?

That depends on your savings, benefits, and risk tolerance.



If missing a few paychecks would cause serious financial stress, short-term disability insurance can provide critical relief. If you’re well-prepared with savings, you may choose to self-insure the short-term and focus on long-term protection instead.

Let’s Review Your Disability Coverage

Disability insurance isn’t one-size-fits-all. During a consultation, we’ll review your employer benefits, savings, and goals—and help you decide whether short-term coverage, long-term coverage, or a combination makes the most sense.