Should I Enroll in Short-Term Disability from my Work Benefits?

Short-Term Disability Insurance (STD) is an often-overlooked part of your workplace benefits, but it can become crucial in the case of injury or illness that prevents you from working temporarily. This info sheet will help you evaluate whether electing this benefit makes sense for your family's unique situation.

💡 What is Short-Term Disability Insurance?

Short-Term Disability (STD) provides a temporary income replacement—typically 60% to 70% of your salary—for a limited period (usually up to 13 weeks), if you are unable to work due to a non-work-related injury, illness, or recovery from childbirth.

✅ Key Considerations for Enrolling:

1. Could Your Family Cover 13 Weeks Without Your Income?

Review your emergency fund. Do you have 3+ months of essential expenses saved?

Would your household cash flow remain stable if one income stopped?

Do you have other safety nets (e.g., HSA, savings, access to short-term loans)?

If you can’t cover 13 weeks without hardship, enrolling in STD may be smart.

2. Who Pays for the Premium?

Employee-paid policies often cost just a few dollars per paycheck.

Employer-paid policies may offer reduced benefits or tax-impacted payouts.

If your paycheck is reduced to pay for STD, can your spouse or partner cover shared benefits (e.g., health, dental, life insurance) during your leave?

3. What’s Your Job Type and Risk Level?

Physically demanding jobs (e.g., firefighters, police officers, construction, manufacturing) face a higher likelihood of injury or strain.

Desk-based or low-risk jobs have lower claims rates but are s􀆟ll vulnerable to illness or off-the-job injuries.

4. Do You Participate in Moderate- to High-Risk Hobbies?

Skiing, mountain biking, recreational sports, mar􀆟al arts, horseback riding, rock climbing, even as a weekend warrior, raise your risk of being sidelined.

Consider if an injury during a leisure activity could impact your income.

5. Would You Qualify for Workers' Comp Instead?

STD does not cover work-related injuries or illnesses, those fall under Workers' Compensation. 

If your job carries on-the-job risk, understand how your employer’s Workers’ Comp interacts with your STD benefits.

🧠 Other Considerations

•  Maternity Leave: Many employers offer STD benefits to supplement income during maternity leave.
• Pre-Existing Conditions: Some STD policies have waiting periods or exclusions—review the fine print.
• Mental Health Coverage: Some STD policies cover short-term leave for mental health challenges, if properly diagnosed.
• Job Tenure Requirements: You may need to be employed a certain number of months to qualify for STD benefits.

📊 Bottom Line: Should You Enroll?

🧭 Need Help Deciding?

McFee Financial Group is here to help you align your benefit decisions with your broader financial strategy. If you’re unsure how Short-Term Disability fits into your financial plan:

Schedule a “Benefit Review Call” with our team.

Let us walk you through how to protect your income while pursuing your goals.