What percentage of gross weekly income is typically covered by Short Term Disability payments?

Short Term Disability (STD) insurance is designed to provide income replacement for individuals who are temporarily unable to work due to illness, injury, or childbirth. The typical coverage for STD policies generally ranges from 50% to 70% of a person's gross weekly income. This percentage reflects the aim of providing substantial financial assistance while still encouraging employees to return to work.

Policies can vary by insurer and specific plan features, but the majority of STD plans are structured to replace a significant portion of income rather than offering a flat rate, which would not reflect the individual's earnings. The idea behind this percentage range is to help individuals cover essential expenses while they are recovering without completely substituting their wages.

While individual plans can differ in terms of benefits and payout structures, the broader standard remains centered around that 50-70% replacement range, establishing it as both a practical and achievable level of income support during short-term disability situations.