Not many employers plan for the worst case scenario, specifically illness or injury amongst their workforce. However, effective business planning means looking out for your employees and organization in every way. Bad things happen unexpectedly, and when they do, it pays to be prepared.
No, a standard health insurance coverage does not suffice. Sure, it pays the hospital bills, but what about recovery and rehabilitation? Many of your employees are not prepared to cover their daily expenses if a disability prevents them from working and earning an income.
A Crutch For Comfort
Disability insurance—it’s the benefit that can provide your employees with the peace of mind of protecting themselves and their families if they are rendered unable to work.
This coverage is available in short and long term. In simple terms, it is income protection in case of disability due to injury. It is important to know that workplace related injuries and accidents are usually covered by a workers’ compensation plan in lieu of any type of disability insurance.
Disability insurance is completely paid for by employers or employee can choose to “buy up” that benefit in addition to a set of basic employee benefits insurance options.
Group disability plans include two or more employees, and medical underwriting is necessary when a group plan covers 10 lives. The amount of benefit available depends of both the total volume of coverage, and the number of lives covered by the group.
These are the standard rules and requirements of both short and long term plan. Specific differences include:
Short-term disability insurance
The benefits (payment to employees) in case of a short-term plan begin after one-day to 30-day waiting period. These payments are typically made anywhere from 6 months to 2 years, depending on the nature of coverage an employer chooses.
Long-term disability insurance
In case of long-term plan benefits begin after 60-day to 1-year waiting period. These payments can last for a few years, up to age 65 or even for life, depending on an employer’s requirements.
In both short and long term disability insurance, the occupation of the employees covered has an effect on the rates of the plan.
The aim of such as plan is to make it stress-free for employees to return to work, all while caring for their health and well-being. The payments made to the employees can shrink the gap between the lack of a normal income and increasing expenses.
Start planning for you employee benefits services today. At JS Benefits Group, we identify a workforce’s unique needs and deliver the best-fitted benefits design and implementation strategies to businesses throughout Pennsylvania.
