Supplemental Employee Benefits
Why is Disability Insurance so important?
The risk of disability is greater than most employees realize. Nearly one-third of employees will miss more than one month of pay due to injury or illness. Illness and tragic events do not discriminate by age or gender. According to the United States Social Security Administration statistics show that for 20-year old’s, more than 1-4 of them will become disabled before retirement age. And nearly 75 percent of disabling injuries to workers occur off the job.
Disability insurance is coverage that provides you with income protection, should you lose time on the job due to an injury or illness. With Disability coverage, you receive partial replacement income.
Cost of coverage can be contributed by the employer or offered as a voluntary benefit (100% employee paid).
Short-term Disability Insurance (STD): Is a type of disability insurance coverage that can help you remain financially stable should you become injured or ill and cannot work. Usually, STD coverage begins within one to 15 days of the event causing your disability. The coverage allows you to continue to receive pay at a fixed weekly amount or a set percentage of your income.
STD typically lasts for about 10 to 26 weeks although this varies by policy. When this STD coverage ends, long term disability (LTD) coverage typically take effect.
Long-term Disability Insurance (LTD): Protects workers in the event they become disabled for a prolonged period prior to retirement.
The length of the LTD plan varies; some may be limited to a period between two and 10 years, while other plans continue paying out until age 65.