Short-Term vs Long-Term Disability Comparison Calculator
Short-Term Disability (STD) pays 60-70% of salary for 3-6 months with 7-14 day waiting period. Long-Term Disability (LTD) takes over from STD end through retirement age (typically 65). Together they bridge income loss from injury or illness.
STD Vs LTD Key Differences
STD: short waiting period (0-14 days), high replacement (60-70%), short duration (3-6 months). LTD: long waiting period (3-6 months, often matching STD end), lower replacement (50-66%), pays for years/decades. STD bridges temporary; LTD insures career-ending disability.
Definitions Of Disability Matter
'Own occupation' vs 'any occupation' definition makes huge difference. Own-occ: cannot perform YOUR job (e.g., surgeon's hand injury — qualifies even if you could be a consultant). Any-occ: cannot perform ANY job your education qualifies you for — much harder threshold. Many group LTD plans switch from own-occ to any-occ at month 24.
Tax Treatment Of Benefits
Premium paid pre-tax (employer): benefits ARE taxable income. Premium paid post-tax (individual): benefits ARE NOT taxable. Many employers offer 'gross-up' option to pay premium with after-tax dollars to protect benefit. Important for LTD where benefit may last 25+ years.
Source: Social Security Administration Disability Statistics 2024, Council for Disability Awareness 2025 Survey. Last updated: May 2026.