Long-term disability plans provide a financial safety net for your employees during the aftermath of an unexpected injury or illness. With comprehensive disability coverage from InSource Insurance Group, you can give your employees the support they need during extended periods away from work.
As a business owner, offering a comprehensive employee benefits package is a great way to attract high-quality employees and reward your staff for their service. Benefits packages typically include health, life, dental, and disability insurance, with a portion of coverage paid for by the employer. Disability insurance covers a portion of employee wages when they take time away from work due to medical issues.
There are two types of disability insurance available: short-term and long-term. Short-term disability insurance covers the first three to six months of work leave, depending on the plan. If an employee’s health condition keeps them out of work for longer than the time frame specified in their short-term disability plan, long-term coverage kicks in.
Many medical conditions can lead to a long-term work absence, including:
Depending on the insurance company you choose for your plan, certain conditions may not be eligible for coverage. Long-term disability insurance typically pays 50-70% of a full-time employee’s salary during their absence for covered illnesses and injuries. Insurance carriers pay out monthly benefits during the benefit period outlined in your plan, which can be anywhere from a few years to a few decades.
Though employers aren’t required to offer long-term disability benefits, many business owners opt to do so. Benefits packages incentivize employees to accept a position with your company and stay in the role. Employer-provided disability plans tend to be much cheaper than individual plans, and you can reduce costs even further by covering a portion of employee premiums.
Many employers have eligibility restrictions for employees seeking disability coverage. You can restrict benefits to full-time employees only and impose a waiting period for new employees before they become eligible. Our team at InSource Insurance Group can help you decide if restricting eligibility is necessary.
Anyone can benefit from long-term disability insurance. Even healthy employees can suffer from an unexpected illness and risk losing months’ worth of income while out of work. Employees with financial dependents or outstanding debt are especially vulnerable to substantial financial loss during a long-term illness and should consider purchasing long-term disability coverage.
Some long-term disability providers don’t require a medical exam, which allows employees with pre-existing conditions to get coverage that isn’t available to them elsewhere. Regardless of your employees’ health status, employer-sponsored long-term disability coverage is an affordable way to protect their interests and prepare them for an unforeseen medical issue.
Our team of industry experts at InSource Insurance Group can find the best long-term disability plan for your employees and your budget.
Insurance carriers impose coverage limitations on long-term disability plans that impact whether your employees receive coverage. Many providers deny coverage for pre-existing conditions. If your employee received treatment for a health condition before joining your disability plan, they won’t receive benefits if that condition leads to disability.
Insurance companies also limit coverage if employees can receive benefits through a different avenue. Most providers require employees to apply for Social Security Administration (SSA) benefits, and they reduce monthly payouts based on the SSA payment received. Additionally, if an employee’s disability resulted from a workplace injury, providers can require employees to file for workers’ compensation benefits.
As a business owner, you may be unsure if providing long-term disability insurance is the right move for your business. After all, premiums are expensive, and insurance carriers limit when employees can receive coverage. However, there are many benefits of providing disability insurance to your employees that can outweigh the negatives.
If you want to learn more about disability coverage and see what options are available to your business, our team at InSource Insurance Group is here to guide you in the process. We can help you determine if you should include long-term disability coverage in your employee benefits package and find competitive quotes from top insurance providers.
Contact us today to take advantage of our employee benefits expertise and learn if providing long-term disability coverage is the right move for your business.
Protect your business with the right insurance through InSource Insurance Group.