Short Term Disability Insurance

Understanding the benefits and features of this coverage is crucial for maintaining financial stability and ensuring a smooth recovery process. This write-up explores how this feature of term insurance works, its key features, and its role in safeguarding your financial well-being.

What is Short-Term Disability Insurance in the UAE?

Short term disability insurance provides a partial or all of your income if you can't work temporarily due to disability occurring because of illness, injury, or a medical condition unrelated to your job. The money is paid directly to you, allowing you to use it for everyday expenses like rent, mortgage, or groceries while off work.

While short-term disability and workers' compensation might seem similar, they cover different situations. Workers' compensation applies to work-related injuries or illnesses, while short-term disability covers non-work-related injuries or conditions. You generally can't receive benefits from both for the same incident.

What are the Primary Features of Short-term Disability Insurance?

Here are the main features of a short-term disability insurance policy —

Common Inclusions of Short-Term Disability Insurance in Dubai

Short-term disability insurance provides essential financial support for individuals unable to work due to temporary medical conditions. Here are some common inclusions typically covered by these policies in Dubai:

Common conditions that may be covered include —

• Serious illnesses like arthritis, cancer, or a heart attack
• Accidental injuries such as broken bones or head trauma
• Pregnancy and childbirth, including recovery time
• Surgery and post-op recovery
• Mental health issues like depression, anxiety, or stress that make working difficult

How Does Short-term Disability Insurance Work?

This disability insurance UAE  protects both employees and employers when a worker is unable to perform their job due to an illness or injury. This is how it works:

• For Employees:  They can file a claim to receive temporary income, helping them cover daily expenses while they recover and avoid financial strain during recovery.
• For Employers: For employers, short-term disability supports the worker's recovery without the company bearing the cost. The insurance company pays the benefits, allowing the employer to hire temporary help without overspending on labour costs while ensuring the employee can return to work once they are healthy. 

Grounds for Denial of Short-Term Disability Insurance Coverage

There are several reasons why a company can deny you a disability insurance:

• Lack of Medical Evidence: Insufficient or incomplete medical documentation
• Eligibility Issues: Not meeting the policy’s requirements, such as employment duration
• Pre-existing Conditions: Conditions present before the policy began may be excluded
• Non-compliance with Treatment: Not following prescribed medical treatment
• Lack of Disability: The condition doesn’t meet the policy’s definition of disability
• Fraud: Providing false information or documents

Things to Consider Before Buying a Short-term Disability Insurance Plan

Consider the following before buying a short-term disability insurance plan in UAE -

• Consider the existing savings or an emergency fund to manage expenses without work
• Evaluate if dependents are relying on income
• Assess personal risk factors related to health or occupation
• Check eligibility for federal, state, or local disability benefits or assistance programs
• Decide based on individual financial needs and circumstances

Frequently Asked Questions