Reasons to Own Short Term Disability Income Insurance

Here are the top 7 reasons to consider the Short Term Disability Income Insurance Plan.

Disability insurance can help replace lost income due to an injury or illness for either a short period of time or for years.

1. To Be Eligible for FERS Disability Retirement Benefits Your Disability Must be Expected to Last at Least One Year

The ACT Disability Income Insurance Program has several plans to choose from to provide disability income benefits upon approval of your claim.  Waiting periods for sickness and accidents as short as 14 days.

2.  New federal employees must wait until after 18 months of service to qualify for FERS disability retirement benefits.¹

With the ACT Disability Income Insurance Program, you are immediately eligible for coverage after becoming a member.  Therefore, if you enrolled into the program and had a disability claim during the first 18 months, you would be covered after claim approval.

3. You have no idea what kind of illness or accident can occur.  Disability insurance covers much more than not being able to work due to a bad car accident. Most causes of disability are due to medical conditions and not specific injuries. Just a few other examples include: Alzheimer’s Disease, Cancer, Arthritis, Rotator Cuff, Migraines, Parkinson’s Disease, Carpal Tunnel, Bipolar Disorder

first-aid-kit4. You have no idea when a disability can occur.  Even though the likelihood of becoming disabled diminishes as we get older, there is no way to know if an accident or medical condition is going to happen.

5. Your savings will not cover your expenses indefinitely.  While the typical suggestion of having accessible savings of 3-6 months of expenses is good idea, what happens if you didn’t save? Depending on your circumstances you may go through your savings in a short period of time, then you are forced to dip into retirement and other investments. Are your other investments enough to cover a year? What about longer? Disability insurance benefits can be used to pay for food, housing, student loan payments, credit card payments, pet care, phone bills, etc. There is no limit on what you can use the benefit for.

6.  Filing for Social Security Disability has a 5 month waiting period.

7. 67% of first time applications for Social Security Disability Income are rejected.



  1.  Information About Disability Retirement (FERS) Office of Personnel Management Standard From 3112-2






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