About STD Plans

• STD plans cover myriad medical conditions, but the ones that cause the most claims are back problems, diabetes and arthritis. STD coverage lasts from a couple of weeks up to one year. Applicants must satisfy "elimination periods" before receiving benefit payments. Elimination periods are the time between the onset of sickness or injury and the distribution of benefits. This ensures that the medical condition is serious enough to qualify for insurance benefits. However, for some medical conditions, such as pregnancies and broken bones, insurers may waive elimination periods. If they are not waived, these periods can last several days to a couple of weeks, depending on the insurer's policy.
  
  

Advantages

• Individuals who are insured under STD plans are able to pay their bills and buy food with their benefit payments until they are able to get back to work. Individuals can purchase STD plans directly from insurance companies. STD coverage can also be obtained through plans sponsored by employers, professional associations and other groups.
  
  

Disadvantages

• Disability plans will never cover 100 percent of the insured's earnings. This is so individuals have an incentive to return to work. Generally STD benefits cover up to 60 percent of pre-disability wages, according to SmartMoney. However, supplemental disability insurance plans can be purchased by workers to boost total disability payments to cover up to 80 percent.
  
  

Costs

• Insurance premiums for STD plans vary based on several factors. Individuals employed by companies that perform risky work such as construction or roofing will pay more in premiums than those who work desk jobs. Individuals should expect to pay one to 3 percent of their salaries on disability premiums, according to Guardian Disability Insurance Brokerage . However, workers covered by group-sponsored plans are not responsible for paying the total premium amounts, as plan sponsors pay some or all of the insurance costs. Those who buy their plans directly from insurers are responsible for all of their premium payments.