Group Disability Insurance
Group Disability Insurance Information
Group Benefits: Short-Term Disability, Long-Term Disability and Life Insurance
When establishing your company’s benefits package, some of the options to consider offering employees are short-term disability, long-term disability and life insurance. These plans can protect a policyholder’s income if they ever sustain injuries that leave them unable to work or can compensate their loved ones in the event of their death.
By providing these benefits, you can guarantee your employees a convenient way to protect their best interests and those of their families. Most people are extremely thankful to have these benefit options for the duration of their time with your company.
If you are interested in these plans, then come to Brokerage Solutions, Inc. We offer quality, coordinated group package options designed to meet the needs of all employees in convenient ways.
Call us at (319) 393-9410 for more information, or just request your free policy quote now!
What is a group benefits package?
They are commonly found in the insurance plans you receive from your employer. Under a group plan, multiple employees can enroll in the same benefits, and most will only pay a fraction of the premium that they would for an individual plan they buy themselves.
Group Disability Insurance
Illnesses or injuries might disable employees, either temporarily or for a long period of time (even permanently). Because of these conditions, they may no longer be able to work and their paycheck might dry up.
In these situations, a great benefit to provide them is a group disability insurance policy. Disability insurance helps participants receive supplementary income support in place of the paycheck they lose because of a disability. The policy will pay based on the income the employee received at the time of the illness or injury. This will help in preventing them from suffering a financial hardship that the loss of income can cause.
There are two primary types of plans:
- Short Term Group Disability Insurance
Under a short term disability plan, you can receive benefits after a short waiting period, also called an elimination period (typically 7 to 14 days) following an illness or injury. These plans often pay you 60 -70% of your salary up to a weekly maximum for a certain number of weeks, though usually for no more than a year.
- Long-Term Group Disability Insurance
A long-term disability plan pays the insured for a longer period of time (typically to Age 67 or Social Security Normal Retirement Age). These plans will pay 50 – 70% of the employee’s pre-disability income up to a monthly maximum. The elimination periods on these plans are longer and commonly last 90 days or at the end of your short term disability.
Group Life Insurance
When someone dies, they might leave unpaid debts and financial obligations and their family could suffer the ramifications. Someone who buys life insurance will create a way for their loved ones to receive a financial settlement upon their death.
An employer who offers this benefit usually pays for most or all the policy’s premium. Therefore, the employee who opts into the coverage will often pay much less than they would for personal life insurance. The benefits of these plans are often substantial. Employees can often enroll in coverage that will provide their loved ones with several years of their salary in death benefits.
Do these plans last forever?
Many group life and group disability policies are guaranteed-issue plans. This means that employee participants won’t have to undergo medical exams or extensive background checks before they can qualify for coverage. This is often convenient for those with pre-existing conditions who might struggle to qualify for or afford a separate policy.
However, there are limitations to how long these policies can benefit participants:
- Employers and insurers can reserve the right to discontinue these benefits, change coverage levels or switch plans from year to year.
- If an employee leaves your company, then they generally cannot take their policies with them to their new employer.
To set up the right disability and group life benefits for your company, don’t wait to get in touch with a Brokerage Solutions, Inc. expert. We’re the team you can trust when it comes to establishing strong, equitable benefits packages that provide exceptional protection for all your employees.