A businesses greatest asset is productive employees. An employee’s greatest asset is their ability to earn an income. If an injury or illness sidelines an employee; the business suffers from loss of productivity and employee suffers from loss of wages. Offering or providing disability income insurance is a smart investment in both your business and your employees. It shows employees that you have a proactive strategy to for your business and to protect their financial well-being.
Adding disability income insurance to your employee benefit package is very affordable, generally has a cost equivalent to increasing your employees’ wages by about 9 cents per hour. Click here to get your disability income insurance proposal
What is the difference between Short-Term & Long-Term Disability?
Short-Term Disability
Also called STD, this policy is for temporary disabilities and is designed to replace 60-70% percent of an employee’s income for a short period of time: typically, 3-6 months or until you can get back to work.
Long-Term disability
Also called LTD, this type of policy is designed to last for many years – through retirement (age 65, 67, or Social Security’s normal retirement age) if needed – replacing 50-70 percent of an employee’s income.
We guide our clients to determine which is the best option for their business and employees. A majority of our clients provide short-term disability as a standard part of their employee benefits compensation package.
There are 3 components to a disability income insurance plan that determines the benefit available for the employee:
The ‘deductible’ is selected in advance by the employer when setting up the plan for the business and employees; most common options are 7 and 14-days however there are options for longer durations: 30, 60, 90, and 180-days.
There are a number of other benefits included in disability income plans including but not limited to, workplace accommodation, retraining education, as well as a survivor benefit (similar to a death benefit).
We guide our clients to determine which is the best option for their business and employees. A majority of our clients provide short-term disability as a standard part of their employee benefits compensation package.
Click here to get your disability income insurance proposal
What About Social Security Disability Coverage?
Also called SSDI, this is coverage that comes as part of an employee’s Social Security benefits. This is not to be confused with or a replacement of an employer offered disability income insurance plan. SSDI or SSI is a federally regulated disability benefits that requires an individual has been gainfully employed in an eligible occupation and be diagnosed by a physician as totally disabled. SSDI benefits generally take 3 to 5 months to receive an approval.
Please see the Social Security Administration website for more information.