Many people who have to leave work on short-term disability insurance (STD) are able to return to their jobs, or take other positions, within a few months. This timeline can be especially likely for individuals who are recovering from serious injuries, or for people who go through intensive but ultimately successful cancer treatments. Other individuals may need to transition from STD to long-term disability insurance (LTD) benefits. Moving from short-term to long-term disability smoothly is unfortunately not always an intuitive process. Understanding important differences in qualifying criteria and documentation requirements between short-term disability vs. long-term disability plans and following a clear STD to LTD process guide can help you prepare for a seamless transition, from STD to LTD benefits.
How Long Until Short-Term Disability Becomes Long-Term?
Many people who leave work on a short-term disability policy assume that if their condition does not improve, they will be set up automatically for a seamless transition, STD to LTD benefits, when their short-term disability benefit period runs out. Unfortunately, as STD to LTD process guides explain, even moving from short-term to long-term disability smoothly usually involves more steps than that.
The application review requirements and differences in qualifying conditions for short-term disability vs. long-term disability policies will usually mean that individuals looking to create their own STD to LTD process guide will typically want to start by reviewing the disability qualifying criteria for their LTD policies before their STD benefit periods run out. Setting yourself up to submit a complete, carefully prepared long-term disability claim as soon as allowed under the terms of your policy can help you to reduce or eliminate gaps in coverage between short-term disability vs. LTD benefits.
STD to LTD Process Guide: Confirming Coverage
The prevalence of employer-sponsored disability insurance varies by industry, but overall American employers tend to offer short-term disability insurance somewhat more often than LTD policies. You likely already know, or think you know, your employee benefits, but confirming your long-term disability coverage and getting an itemized list of any requirements you might need to meet to ensure seamless transition from STD to LTD benefits can be a useful step.
The qualifying criteria for short-term disability vs. long-term disability coverage can be very different, even when the two policies are set up with a single insurance company under the same employer-sponsored group plan. LTD policies often apply a much stricter definition of disability than their short-term counterparts. Just because you qualified for short-term disability coverage through your employer-sponsored group plan does not necessarily mean you can assume eligibility for LTD benefits, even with the same insurance company. Making sure you understand the differences in qualifying conditions can make moving from short-term to long-term disability easier by helping you avoid unpleasant surprises.
Seamless Transition: STD to LTD Benefits Criteria for Coverage
Even if you were approved rapidly for short-term disability benefits, and even if you have long-term disability insurance with the same company, the differences in qualifying criteria between most short-term disability vs. long-term disability policies mean that your claim for LTD benefits will be reviewed separately from your STD claim. This in turn means that even individuals who have a relatively streamlined process will still need to file a separate application.
The good news for individuals on employer-sponsored group plans is that having both policies with the same insurance provider can sometimes mean a streamlined process for the collection and submission of medical evidence supporting your application, since the insurance company may be able to transfer some of your documentation from one department to another internally. Another advantage that employer-sponsored plans may sometimes have is that in many cases your former employer’s human resources (HR) team may be able to serve as an STD to LTD process guide, helping you identify the procedural requirements you will need to meet when moving from short-term to long-term disability smoothly.
What Is the Time Difference Between Short-Term and Long-Term Disability?
Disability insurance policies generally impose what is called an elimination period. The elimination period is a span of time between the date when an individual becomes unable to work and the date when he or she is eligible to submit a claim for disability benefits.
Seamless Transition, STD to LTD: Elimination Period vs. Benefit Period
The specifics vary by policy, but in general the elimination period for short-term disability policies is much shorter than the LTD elimination period. The benefit period, the time over which benefits are provided, is also shorter for short-term disability vs. long-term disability policies.
STD to LTD Process Guide: What Is the LTD Transition Benefit?
If you have short-term and long-term disability insurance through the same insurer, and especially if you are on an employer-sponsored group plan, the elimination period for your LTD policy may be set up to coincide with the end of the benefit period for your STD insurance. This scenario tends to be convenient for moving from short-term to long-term disability smoothly.
Even if you do not have this LTD transition benefit, however, the maximum benefit period for short-term disability plans tends to be around three to six months. Because three to six months is also a common timeframe for LTD elimination periods, often moving from short-term to long-term disability smoothly is a matter of getting the claim for long-term disability benefits ready to go as the elimination period for the LTD policy ends, in order to minimize any gaps between the end of the STD benefit period and the beginning of LTD benefit payments.
What Happens When You Move From Short-Term Disability to Long-Term Disability?
Knowing that you will almost certainly be required to submit a separate claim for benefits can make moving from short-term to long-term disability smoothly much easier, primarily because it sets you up to prepare the second application without delays. Assuming you have understood any differences in documentation requirements and qualifying conditions and addressed those appropriately in preparing your LTD claim, there are still a few considerations an STD to LTD process guide should cover to help you master a seamless transition, STD to LTD benefits.
Short-Term Disability vs. Long-Term Disability Income Replacement
Moving from short-term disability to long-term disability smoothly will likely require a lifestyle adjustment. Most people who have to leave the workforce due to disability find it emotionally and psychologically challenging to accept that they may not be well enough to work again for years, if ever. In addition to the mental health impacts of the disability itself, in most cases there is also a significant decrease in income that may necessitate multiple other changes in housing, diet, and recreation.
Both short-term and long-term disability insurance policies work by replacing a percentage of the covered person’s pre-disability income. However, short-term disability vs. long-term disability policies typically cover a higher percentage of the individual’s regular income prior to disability. What this means for most people aiming for a seamless transition, STD to LTD benefits, is that they will likely experience two sharp drops in income: One when they go from pre-disability income to short-term disability benefits, and another when they move from short-term disability to LTD.
Moving From Short-Term to Long-Term Disability Smoothly: Preparing for Benefits Renewal Requirements
Besides the differences in qualifying criteria between short-term disability vs. long-term disability plans, LTD benefits are also frequently subject to expectations for regular benefit renewals that do not necessarily apply to short-term disability insurance. Because the benefit period for STD policies is usually no more than six months, short-term disability insurance tends not to impose the same kind of benefits renewal schedule commonly seen in LTD plans.
The details will depend on the terms of the policy, but many long-term disability plans require individuals receiving benefit payments to “renew” their benefits periodically by providing updated medical evidence to show that they continue to meet the eligibility criteria under the terms of the policy. If you are moving from short-term to long-term disability smoothly, take careful note of the documentation you are required to submit during the transition. Because the medical evidence and standard of disability you will need to meet in order to make a seamless transition, STD to LTD benefits, will often be similar to the requirements for LTD benefit renewal, you may be able to let the STD to LTD process guide you toward a plan for how to approach your first renewal deadline.
Prepare for a Seamless Transition: STD to LTD Benefits and Requirements
Moving from short-term to long-term disability smoothly will likely require significant preparation. Short-term disability vs. long-term disability tends to replace a higher percentage of income and also usually applies a lower standard for disability compared to LTD policies. To set yourself up for a seamless transition, STD to LTD benefits, start early on familiarizing yourself with the claims process for your LTD plan and gathering the documentation of medical evidence you may need to meet a stricter set of qualifying criteria. Establish an STD to LTD process guide based on the terms of your specific policies, and reach out to a disability attorney or a benefits specialist with your former employer to seek assistance in making sure you have met all the required steps.
