Employee life insurance & long term disability options
Disability insurance is a benefit that not a lot of business’s or companies offer, but if available at an individual’s place of employment is an outstanding benefit.
Purchased in a group plan which is much more affordable for the company, and most employees don’t mind paying a larger portion towards this contribution since the benefits can be substantial if ever needed.
Disability is either short term or long term depending on what plan your company purchases. Short term disability will pay your employees salary, usually up to 60% for a period that is typically no longer than six (6) months.
Long term disability is the most common type of insurance offered by companies as part of their commercial health plan. This protects the individual from catastrophic illness or injury which includes a permanent career ending disaster and the individual’s ability to earn any more income. The amount of income received depends on the employee’s salary and type of policy. 60% of the employees’ income is a general number, and this too will vary.
Long term disability usually does not kick in right away, but should cover an employee to age 65.
Insurance coverage is a benefit that also attracts good employees in today’s society. Only 43% of medium to large businesses have long term disability. Small companies with 100 employees or less, offered long term at a rate of 22%. Jobs that have the most risk of injury, the availability of long term is 10%.
If your business offers your employees life insurance, you may want to consult with your ABP Insurance Broker about long term disability as an alternative. This product is much more beneficial than life insurance and by relocating benefit dollars, it just might be affordable.