A group disability plan can offer that type of protection. Short-term plans provide benefits for periods that typically run 13 to 26 weeks. Short-term disability generally pays as a continuation of the employee's salary, but sometimes at a reduced rate. Benefits may be anywhere between 50 percent and 100 percent of salary. Long-term policies can extend benefits for a considerable length of time.
Many plans provide two years of benefits.
Some will continue to pay until the employee reaches retirement age. At that point whatever retirement income the employee has will kick in. Long-term disability payments are normally limited to 60 percent of the employee's salary. To collect from a disability plan, the employee must be unable to work. This requirement becomes more rigorous as the period of disability lengthens.