Disability benefits may be offered through four primary sources, depending on the circumstances: Social Security, a state government, a private insurer, or workers' compensation.
Let's discuss the difference between temporary disability and permanent disability benefits. Then we'll look at which of these programs provide temporary disability benefits.
If you've suffered a work-related injury or illness that will temporarily impact your ability to work at full capacity, you'll likely be eligible for temporary disability benefits. For example, if you suffer a back injury at work that sidelines you for several months, but you eventually make a full recovery, you'll be entitled to temporary disability benefits under your state's workers' comp program.
Temporary disability benefits are paid at two-thirds of your average weekly wage before your injury.
If your doctor says that your recovery has plateaued (meaning you aren't expected to get significantly better, even with continuing treatment), your temporary disability benefits will end. At that point, if you have any lingering impairments that affect your ability to work, you should receive permanent disability benefits.
A permanent partial disability (PPD) means an impairment that won't go away—one that will always impact your ability to work at full capacity.
As with all types of workers' comp injuries, a PPD can be the result of a work-related injury or an occupational disease.
Permanent disabilities come in two types: permanent partial disabilities and permanent total disabilities.
A permanent partial disability is one that limits, but doesn't completely eliminate, a person's ability to work. A permanent total disability means a person can't work at all (or is presumed to be totally disabled because of a loss of both eyes, both hands, or total paralysis).
Most states require workers' compensation insurers to pay temporary disability benefits at a higher rate (2/3 of your average weekly wage before your injury) than they pay permanent disability benefits. Exactly how much you'll receive depends on the rules in your state.
Social Security does not offer temporary disability benefits, only permanent benefits (although your Social Security benefits can be cut off). To get Social Security disability, you need to be disabled for at least one year, or have an illness that is expected to end in death.
If you're approved for Social Security disability benefits, you can continue to receive them until your condition improves, you pass away, or you reach full retirement age and become eligible for retirement benefits.
Only five states have a temporary disability insurance (TDI) program:
In these states, you can get paid disability benefits if you can't work for less than a year.
Some private insurers offer short-term disability insurance policies. These usually cover a portion of your salary for up to six month while you recover from an accident or illness.
Much more common are long-term disability (LTD) insurance policies, offered by private insurers, but usually as part of a group plan through an employer. These policies usually have a waiting period of at least 90 days, during which you won't receive any insurance benefits. Some, but not all, LTD policies will pay you benefits for as long as you are disabled. Others are limited to five or ten year periods.
Workers' comp pays both permanent and temporary disability benefits. Temporary disability benefits are paid while you recovering from an illness or injury, and in most states can last up to two years.