Short answer: Short-term disability (STD) replaces part of your income for a few weeks to a few months after an injury or illness, usually after a short waiting period. Long-term disability (LTD) starts after STD ends and can continue for years, sometimes to retirement age. Both typically replace about 50–70% of income.
Disability insurance replaces a portion of your paycheck when you can’t work due to a non-job-related injury or illness. (Work-related injuries are handled by workers’ compensation.) It comes in two layers:
Short-term disability (STD): begins after a short elimination period (often 0–14 days) and pays benefits for a limited time, commonly up to 3 to 6 months. It bridges the gap right after something happens.
Long-term disability (LTD): begins after a longer elimination period (often 90–180 days, designed to pick up where STD leaves off) and can pay for years, sometimes until Social Security retirement age, depending on the policy.
Both typically replace 50–70% of income, often with a monthly dollar cap. Two things to check: the definition of disability, “own occupation” (you can’t do your own job) is more generous than “any occupation” (you can’t do any suitable job), and taxability: if the employer pays the premium, benefits are usually taxable; if you pay with after-tax dollars, benefits are usually tax-free.
Sources
- General disability-insurance reference. Flagged research gap in the Employee Benefits KB (Ancillary & Supplemental, Leave & Disability). Verify specifics before CE use.
Content history
Originally published: June 16, 2026
Last reviewed: June 16, 2026