The Who’s and What’s of Group Disability
As companies find it difficult to attract and retain top talent, many are making sure their benefit programs are competitive. Often overlooked, disability insurance is an income protection benefit that will bring value both to the company and to its employees.
Who Can Offer Group Disability Insurance?
Businesses with 10 or more employees can offer a group disability policy. These types of policies are flexible and allow the company to design a plan that meets their budget. Employers can also define whether the plan is paid by the employee, employer, or some combination of the two.
With a group policy, buying power is leveraged so the plan can offer lower premiums than if an individual sought a disability policy on their own. It makes these plans very affordable and attractive to both employees and employers alike.
What Does Group Disability Insurance Cover?
There are two types short term disability (STD) and long term disability (LTD). If an employee is disabled due to illness or injury, depending on the plan, STD provides between 40-60% of the employees base wages for up to a year. LTD provides a disabled worker up to 70% of their income for a specified duration of 5-10 years or through retirement age, depending on the plan.
The ability to generate income is a persons greatest asset. Disability insurance is a great way for the employer and employee to protect that investment.