Businesses must play an active role in order to protect the income of their employees so that in case of an unfortunate event, they are able to get their top talent back on the premises. Knowledgeable employers take precaution by offering group insurance plans to cover for the long term and short term disability. Group disability plan is a solitary policy for several employees, which is typically less costly than individual coverage. Read on to find out more about group disability insurance plan.
Types of Disability Benefits
Group disability plan helps in streamlining the process of claims and enable the employees to rejoin the company as soon as it is feasible. However, the definition of disability varies from one policy to another. While some employers may consider pre-existing medical conditions, others don’t. Some policies only provide coverage benefits only if the individual is completely disabled.
Employers who are concerned about retaining the best talent offer their employees the benefit of short term and long term disability benefits either as voluntary or worksite package.
1. Short Term Disability
If an employee qualifies for the group disability according to the definition, short term disability plan will provide income to the employee. The reimbursement may either completely or partially compensate for the lost salary. The interval spans over a period of six months and even less depending on the terms of the policy. There is also elimination duration at the beginning before the employee will start receiving the benefits. This duration is short and it ranges from a few days to two weeks at most.
2. Long Term Disability
If an employee qualifies for the long term disability plan, they will receive income payments. The elimination period of long term disability is generally more than the short term disability, which may be 90 days or longer. However, a key advantage to the employees is that it will continue to pay the employee benefits for lifetime, or until the individual reaches 65 years of age.
It is important to note that group disability plans generally do not offer employee benefits for self-inflicted wounds, criminal acts, and occupational injuries and terrorism acts. The ways injuries are interpreted by organizations vary depending on the employers.
Benefits of Group Disability Plan
The underwriting restrictions are less stringent for the group plans as opposed to individual plans. Group disability plans offer the employers the benefit of choosing a policy design that is in accordance to their budget, such as purchasing the policy coverage can be made compulsory for the employees regardless of their present condition, the premiums can be paid by the employer, employee or both, the employers may be allowed to transfer the policy if they decide to leave the company. Offering group disability plan to the employees results in a better retention rate, which ultimately helps business in achieving their objectives.
For expert assistance and to learn more about Group Disability Insurance Plans call JS Benefits Group on 877-355-6070.
