Group Employee Benefits: Disability Insurance
Disability insurance can be an attractive benefit for employees and a way to provide them with income should illness or non-workplace injury force them away from the workplace. It keeps the beneficiary afloat without dipping into their savings. This can be a particularly difficult issue of you’re disabled for a long time. But disability can put stress on your income even if you’re only laid up for a few weeks.
Be sure that your employees are covered in the event of unforeseen medical problems by offering disability insurance. It’s also important to know the types of disability insurance. and how these plans work. Businesses and other organizations purchase disability insurance to cover the needs of everyone in the group. Individuals are not issued policies. Instead, there is one policy that covers the whole group.
There are two types of disability you should be aware of:
- Short-term disability coverage will provide benefits based on a percentage of the employee’s salary during a disability that lasts (generally) 6 months or less. Very often, employees receive short-term disability benefits for pregnancies or minor injuries such as sprains or muscle strain. Note that compensation for on the job injuries might be reimbursed by workers’ compensation.
- Long-term disability coverage takes up where short-term coverage leaves off, and provides eligible employees with benefits during a period of disability, lasting up to age 65 or normal social security retirement age. Long-term disability is usually a protection for employees that gives them the ability to maintain an income in the event of a catastrophic illness or injury or if they are unable to work for an extended period of time.
Blair insurance can explain what you need to know about setting up a disability insurance program for your workplace. To get started, contact us.