Disability Insurance LTD vs STD Comparison Calculator 2027
Compare short-term disability (STD) vs long-term disability (LTD) insurance for 2027 — coverage gap, elimination periods, benefit percentages, employer vs individual.
STD (Short-Term Disability)
Replaces 50-70% of income for 3-26 weeks. Elimination period typically 7-14 days. Pregnancy + childbirth commonly covered. Often employer-sponsored as part of benefits.
LTD (Long-Term Disability)
Replaces 50-70% of income after STD ends, lasts to age 65 or 5-10 years depending on plan. Own-occupation vs any-occupation definition critical — own-occ better for specialists.
Why Most Need Individual LTD
Employer LTD is usually any-occupation (after 2 years), taxable if employer pays, capped at $5-10k/mo. Individual LTD: own-occupation, tax-free if you pay, higher caps. Worth ~$50-200/mo.
Common Coverage Gap
Many employers offer STD (paid via payroll) but no LTD. Federal STD doesn't exist. SSDI requires 5-month waiting period and rejects 65% of applications first round. Get individual LTD.
Source: social-security.gov disability benefits, iii.org disability statistics. Last updated: May 2026.