Group Disability Insurance

Disability Insurance is a valuable asset to any employers benefits package. Your employee may have an incident with their health that causes them to miss a significant amount of work. In order to make sure that they are able to continue to pay for life's necessities, disability insurance is vital.

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There are excellent options from carriers and these plans are flexible. As an employer you do not have to contribute to disability insurance to offer it to your employees. You can offer it as an option that your employees can purchase with pre-tax dollars through a plan sponsored by your business.

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However, most businesses that offer disability pay the entire amount of the premium or a percentage of the premium. Disability insurance is not expensive. Disability insurance typically pays out at 60% of the employees income for a specified period of time. This amount can vary between 40% to 70%, the percentage covered affects the premium costs.

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There are two types of Disability coverage, short term and long term. 

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Short term disability provides benefits for as few as 13 weeks to as many as 52, the industry standard is 26 weeks. The cost of the policy is partially based on the duration of benefits payments. This is the most common

 

There is a waiting period before benefits start, this is called an "elimination period."  For most short term disability policies, this is a 14 day waiting period. However, you can choose an elimination period that is shorter or longer.

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Long term disability is a less often covered insurance option for employers, the elimination period is typically between six months and a year. The benefits typically cover 50% of the employees income and last from the time of incurring the disability to age 65.

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Benefits management for these policies vary depending on your provider. 

Some companies offer robust benefits management solutions, others offer more basic solutions. So, depending on your office staff and budget, there are good options available for you. 

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Many people seek employment with benefits in order to feel more secure.

Security is second on Maslow's hierarchy of needs, listed after physiological needs. So once you have food, water and shelter, security is what humans crave most. When you as an employer meet that need you are helping your employees to feel more security, which is one of their core needs. 

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If you want to attract and keep top quality talent, this is the benefit that will put your small business ahead of the pack. Most small businesses do not include disability insurance in their benefits package. If you are in a competitive market and keeping top talent on your team and away from your competitors is vital to your success, this is the insurance that will help you win.

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