Disability insurance is commonly known as paycheck protection. A wide variety of disability plans can protect your business and your employees in the case of a short term disability (broken bone or maternity leave) or a long term illness or disability.
Long term disability (LTD) is an insurance policy that protects an employee from loss of income in the event that he or she is unable to work due to illness, injury, or accident for a long period of time. LTD policies have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life. Long term disability insurance is usually provided by employers, and there are a variety of differing plans available for employers to offer as part of a comprehensive employee benefits package.
Short term disability (STD) typically has a waiting period of 0 to 14 days with a benefit period of 60 to 90 days. It may be offered on a voluntary basis as a payroll deduction.