Like medical insurance, the employer may offer a Short Term Disability (STD) insurance to his workers (Group STD). If he does not offer such a program, the employee is able to insure himself – (Individual STD)

Short Term Disability Insurance will pay the employee a percentage of his monthly wages (Salary Replacement) in the case of temporary nonattendance due to injury, illness, pregnancy or mental disturbance.

Typical program:

  1. Weekly payment as a percentage from the employee income (Salary Replacement)

Percentage varies from plan to plan. Usually from – 50{0f02a0451207784813eb889f019ad82b25cc7efdbb50ca340bafd8ed7a6129b7} to – 70{0f02a0451207784813eb889f019ad82b25cc7efdbb50ca340bafd8ed7a6129b7} of the employee’s weekly Gross Salary.

  1. Maximum Benefit Amount:

Each program will determine the Maximum compensation (usually weekly). That presents the maximum payment the employee will receive.

  1. Benefit Duration:

The program is intended for temporary Period (Short Term). Period of coverage varies in different programs, usually from 12 weeks to 12 months.

  1. Waiting period:

Waiting period is defined as the time between the day that the employee is unable to work (due to illness / injury / pregnancy) and the day the insurance program begins to pay him weekly payment. This period depends on the conditions of the plan and the employer.

  1. Premium:

The cost of the program, usually paid on a monthly basis. Premium Group is cheaper than a premium individual.

There is an option to purchase a Long Term Disability Insurance based on the same principles.

Accidental Death and Dismemberment Insurance:

Life insurance policy will pay a certain amount in case of the Insured death to the Beneficiaries appearing in the Policy. Life insurance policy coverage is relatively wide in any case of natural death or an accident.

Main reasons for life insurance:

  1. Substitute for loss of income
  1. Assistance to wife / spouse maintenance the house
  1. Funding the children and their education

Accidental Death and Dismemberment Insurance – AD amp; D:

This insurance provides coverage in cases of death or severe injury / paralysis as a result of an accident. The insurance company will pay to the Beneficiaries compensation in a case of the insured death, and in the case of paralysis.

There are several types of AD amp; D policy in the U.S.:

  1. Additional life insurance policy Group (Group Life Supplement) – part of Group life insurance policy is provided to the employee as part of his work. Compensation is usually the height of the compensation of life insurance policy.
  1. Voluntary (AD amp; D Voluntary) – the Policy is offered to the employee on a voluntary based, the premium is paid by the employee from his salary.
  1. Travel Accident – Business Trip – Insurance is usually done by the employer in case of the employee’s death in an accident during a business trip.


can i have more than one life insurance policy uk?

Yes you can have more than one policies. It however, depends on several other factors as well. You can discuss your options with you advisor as well.


Chris Harrison is a content writer and editor from New Caledonia. He is currently managing Oneunionone which is based in North Carolino. Before founding the website, he was a full time editor in New York USA.