Employer must have this policy that is current as of date of hire. It must also provide necessary emergency pay. This coverage is not tied to any retirement fund.
About employer short term disability:
With employer short term disability, employers can reduce their liability by having this policy coverage in place. They can also avoid long-term disability benefits that could be difficult to pay.
-Quick return to work & normal life is possible.
-Low premiums with minimal income that provides cover.
-Businesses will continue to thrive with loss of income.
Pros of employer short term disability:
Though you must be eligible for retirement & disability benefits before employer short term disability kicks in, there are many employers who pay for employee short term disability even before this.
-Employers still have many options to find qualified employees & can continue to retain & attract employees.
-Keep employees on staff & give back to community.
Pros of employer short term disability:
In employer short term disability, severe illness such as cancer that will require hospitalization or treatment may make you eligible this coverage. There has to be a good employee disability rating.
Cons of employer short term disability:
Keep the following in mind when comparing a short term disability to employer’s plan. For this, you’ll have to research carefully to determine right benefits.
You need to be sick enough for buying short term disability insurance policy. However, this depends upon how sick you are, and this is difficult to quantify. Some people use benchmark of a doctor.