Mutual of Omaha Short-Term Disability Insurance: An Overview
- Short-term disability plans provide income if you're out of work due to illness or injury. Learn the basics of Mutual of Omaha short-term disability insurance.
An injury or illness can leave you unable to work, jeopardizing your income and your family’s financial security. Short-term disability insurance can provide income protection that helps you cover routine expenses, so you can focus on recovering. As a leading provider of financial solutions, Mutual of Omaha offers short-term disability insurance with flexible coverage options, so you can safeguard your income if you become temporarily disabled due to sickness or injury. But, before purchasing a plan, it’s important to understand how this type of coverage works and what Mutual of Omaha short-term disability insurance can offer policyholders.
What Is Short-Term Disability Insurance?
Short-term disability insurance is coverage that replaces a percentage of a policyholder’s income if they become unable to work due to illness or injury. These plans, which are often provided through the workplace, typically cover non-work-related accidents and recurring medical issues, such as chronic back pain. Benefits usually pay out over several months.
Short-term disability insurance shouldn't be confused with workers' compensation insurance, which provides benefits, such as income protection and medical coverage, for workers who become injured or ill as a direct result of work-related activities.
What Does Mutual of Omaha's Short-Term Disability Coverage Offer?
Mutual of Omaha’s Mutual Income Solutions products offer customizable long- and short-term disability coverage. Unlike many carriers, Mutual of Omaha offers plans for individuals as well as groups.
Coverage for Individuals
Individual coverage through Mutual of Omaha’s Mutual Income Solutions is available to consumers ages 18 through 61, with monthly benefits ranging from $300 to $20,000 in $100 increments, depending on the policyholder's annual income. After a contractual waiting period, policyholders who are temporarily out of work due to an illness or injury receive a monthly cash benefit. Additional benefits include:
- A waiver of your premiums during the benefits period
- A survivor benefit that delivers a one-time payout to a designated beneficiary if you pass away while receiving benefits
- A waiver of the waiting period if a chronic disability recurs within 6 months or you experience a new disability within 30 days
- No-cost vocational rehabilitation services during your benefits payout period
Policyholders may also purchase additional benefits, such as:
- Coverage that pays out if an illness or disability requires you to work in another occupation
- The return of a percentage of premiums every 10 years if benefits aren’t paid out
- Substance abuse and mental health extensions
- Catastrophic disability benefits that pay out an additional amount if you’re unable to independently perform at least two activities of daily living, such as bathing or eating
To cover cost-of-living increases, Mutual of Omaha automatically raises a policyholder’s monthly benefit by 4% annually.
Coverage for Groups
Mutual of Omaha’s group short-term disability plans are designed for the workplace. Voluntary, contributory and noncontributory policies are available, and Mutual of Omaha agents can work with companies to customize coverage that’s appropriate for their needs and budgets. Group plans typically offer payouts that reflect a percentage of a worker’s earnings, providing cash benefits, so they can pay their bills while out of work, as well as return-to-work incentives. Premiums are waived while employees are actively receiving benefits, and policies offer a seamless transition to long-term disability if the company carries both types of plans through Mutual of Omaha.
Employers may also round out coverage with optional benefits, such as:
- Survivors’ benefits
- Reasonable accommodation
- Vocational rehabilitation
How Does Mutual of Omaha Short-Term Disability Work?
If a short-term disability policyholder becomes injured or falls ill and is unable to work, they can file a claim for benefits. This claim should typically be accompanied by supporting documentation, such as a physician’s statement, explaining the nature of the illness or injury and estimating the duration of the disability.
If the claim is approved, the policyholder receives benefits. However, many carriers, including Mutual of Omaha, have contractual elimination periods, which are waiting periods before the payout begins. Once the elimination period ends, the policyholder begins receiving benefits, which are designed to help pay for a mortgage or rent, utilities, groceries and other daily living expenses. Payouts continue until the policyholder returns to work or the contractual benefit period ends.
How Much Does a Mutual of Omaha Short-Term Disability Policy Cost?
Policy premiums are calculated using several factors, including an applicant’s:
- Annual income
- Health history
Does Mutual of Omaha Offer Discounted Coverage?
Yes. Mutual of Omaha may discount short-term disability coverage in the following circumstances:
- A policyholder belongs to an approved organization
- An individual has been self-employed for 2 years or longer
- A group of three or more individuals work for the same employer
- Two people in a household purchase similar policies
Mutual of Omaha also offers multi-policy discounts for individuals who also purchase a life insurance policy or long-term care coverage.
Can Anyone Qualify for Mutual of Omaha’s Short-Term Disability Plans?
No. Although short-term disability plans are available to individuals between the ages of 18 and 61, applicants in the following categories typically won’t qualify for coverage:
- Currently disabled individuals
- Pregnant women
- Individuals who have an upcoming surgery
- Individuals who are recuperating from a serious illness
Is Mutual of Omaha Short-Term Disability Insurance Worth the Cost?
Employer-provided short-term disability insurance can be an important part of a workplace benefits package, providing income protection if you’re temporarily disabled and can’t work. If you’re self-employed or your employer doesn’t provide short-term disability insurance, you may benefit from purchasing an individual policy. However, these plans can be costly when purchased individually, and many workers are better served by placing money in an emergency fund to cover lost income in the event they become disabled.