As we enter 2025, the 2024 Federal Employee Short-Term Disability Insurance Act remains pending in the House Committee on Oversight and Accountability with no plans to submit the legislation for a vote. Designed to create a short-term disability insurance program for conditions not covered by the Federal Employees Compensation Act, it’s the latest of several attempts to fill a major gap in insurance that the government offers to federal employees.
What Are Your Short-Term Disability Options?
Until the Short-Term Disability Insurance Act or similar legislation is signed into law, federal workers don’t have coverage for a short-term disability through their government benefits. If you’re unable to work for a month or longer due to an illness or injury that’s not work-related, you can use your paid sick leave to provide you with income.
However, if you run out of sick leave and need more time to get back on your feet, you’ll have to find another source of income to help cover your bills. Short-term disability is defined as a medical condition that causes you to be unable to perform your job for a period of time up to a year. If your disability is expected to last a year or longer, your only other option is filing for a FERS Disability Retirement.
“The cost of your premiums depends on the options and features you include with your policy and the amount of income coverage you choose.”
Consider Buying Short-Term Disability Insurance From A Private Insurer
Many private insurance companies offer Short-Term Disability policies that can be customized for your needs. Your policy can replace all or a percentage of your income and the benefit is paid directly to you to use as you see fit. Coverage begins after the elimination period specified in your policy. The elimination period is the amount of time that must pass before your benefit kicks in. Depending on the policy you buy, it can range from as little as seven days to 14 days or longer. The cost of your premiums depends on the options and features you include with your policy and the amount of income coverage you choose.
How Much Short-Term Disability Insurance Do You Need?
There are a few factors to consider when determining the amount of short-term disability insurance you may need. For example, how much accumulated sick leave can you count on if you become temporarily disabled? Is your savings or emergency fund enough to cover living expenses and medical costs for several months? How many loved ones are financially dependent on your income?
To learn more, connect with an FRC® trained advisor who can help you compare private-sector short-term disability policies while helping you determine how much coverage you need.
