Short-Term vs Long-Term Disability 2027 Comparison

Short-Term Disability (STD) covers weeks to months. Long-Term Disability (LTD) covers years to age 65. Most workers need both — STD bridges your sick-time gap; LTD protects you from a career-ending injury. This 2027 calculator compares costs and benefits.

Why You Need Both STD And LTD

Short-Term Disability (STD) and Long-Term Disability (LTD) are designed to be stacked. STD covers the first 0-180 days of inability to work (childbirth recovery, broken leg, short surgery recovery). LTD covers 90 days to retirement for serious conditions. Without STD, you self-fund the elimination period from emergency savings. Without LTD, a career-ending injury (cancer, stroke, MS, back injury) drops your income to nearly zero for decades.

Group vs Individual Disability

Group LTD via employer: cheap (often free or $5-$20/month), typically pays 60% of base salary, capped at $5K-$15K/month, taxable benefits if employer pays premium, NOT portable when you change jobs, often doesn't cover bonus/commission. Individual LTD: more expensive ($1,500-$4,000/year typical), covers higher income (often up to $20K-$30K/month), tax-free benefits if you pay premium, portable, covers commission/bonus. Best practice: have both — group provides the floor, individual fills the gaps.

Own-Occupation Is Worth The Money

The single most important LTD policy provision: own-occupation definition. "True OOC" pays if you can't perform YOUR specific occupation, regardless of what other jobs you could do. "Any-occupation" pays only if you can't do ANY job. For specialists (surgeons, dentists, attorneys, software engineers), "any-occupation" almost never pays — you can always work as a Walmart greeter. Always pay extra for true own-occupation.

Common Disability Coverage Gaps

(1) Buying only employer group LTD — group typically pays 60% of base salary, excludes bonus/commission, isn't portable. Sales people and commission earners lose 20-40% income on group only. Add individual LTD. (2) Choosing the cheapest definition — "any-occupation" almost never pays. Always pay extra for own-occupation. (3) Skipping COLA rider — without cost-of-living adjustment, a 30-year claim loses 50%+ purchasing power. (4) Not naming a beneficiary — most LTD policies allow continuation to survivor for a limited period; structure correctly. (5) Forgetting STD bridges sick-leave gap — most workers have only 2-4 weeks accrued sick time.

Last updated May 2026. Sources cited in tool output.