Group Disability Insurance, both Short-term & Long-term, protects your employees’ most valuable asset, their ability to earn an income. By adding Group Disability Insurance to your benefits package, you’re helping to protect your employees and their families from financial hardship in the event of an illness or injury. Group Disability Insurance is a highly sought-after component of a competitive benefits package for employers who need to attract and retain talented employees. If you are offered group disability insurance through your employer you should always take it, especially if you have no other disability insurance of your own. Group Disability Insurance policies often have fewer underwriting restrictions than individual disability polices & the premiums are much lower.
Short-term disability (STD) coverage provides disabled employees with a specified percentage of pre-disability income — typically 60 percent — once their sick leave has been exhausted. The duration of STD coverage varies, but is typically not more than six months.
Long-term disability (LTD) insurance provides income to workers whose earnings are interrupted by lengthy periods of disability. Long-term disability benefits usually begin when sick leave and short-term disability benefits are exhausted, and typically replace about 60 percent of pay. LTD benefits can continue for anywhere from five years to the remainder of an individual’s life. LTD is generally considered protection from the effects of a catastrophic illness or injury, but claims are often a result of common ongoing medical conditions that worsen overtime (e.g., heart disease, hypertension and diabetes).
• Income Replacement – If you were unable to work due to an illness or injury, group disability insurance can help to pay most of your essential expenses or bills that continue even when you can’t work, including food, utilities, home & car payments, and school tuition.
• 1 in 4 of today’s 20-year-olds will become disabled before reaching the age of 67.