Who Benefits From Group Disability Insurance?

From food to rent to childcare, your employees rely on their income to cover almost everything. But what happens if your employee can’t work because of an injury?

No one can predict when an unexpected illness might strike, and even the healthiest employees might find themselves needing group disability insurance. Luckily, you can provide short and long-term disability insurance to keep your employees afloat if an injury or illness keeps them out of work.

Differences Between Short-Term and Long-Term Disability Insurance

You want to keep your employees safe both financially and physically, which is why you offer an employee benefits package to supplement their income. But even with the best health insurance and a generous life insurance policy, your employees still need group disability insurance to be fully covered in an emergency.

Group disability insurance is a critical component of a benefits package because it ensures an employee won’t be financially devastated after a medical emergency. Hospital bills are bad enough to begin with, but losing income while recovering from an injury can be the nail in the financial coffin. That’s where group disability insurance comes in—it pays a portion of an employee’s income when they are out of work. Depending on the type and severity of illness, disability insurance can cover short-term and long-term work absences.

Short-Term Disability Insurance

When an employee is temporarily out of work due to illness or injury, short-term disability insurance will pay a significant portion of their income during an absence of 26 weeks or less. Short-term disability covers absences due to childbirth, surgery, or a lengthy illness, making it essential for employees who don’t want to drain their savings during an unavoidable work absence. Group short-term disability benefits tend to be cheaper than standalone coverage, and employers usually cover some or all of the costs.

Long-Term Disability Insurance

Sometimes medical events can have long-lasting effects on an employee’s ability to work. Depending on the group disability plan, employees can receive a portion of their income indefinitely if a long-lasting illness affects their ability to work. Examples of a long-lasting illness include cancer or mental health disorders. Sometimes employees have to reduce their work hours due to injury or switch jobs altogether, and long-term disability insurance can pay supplemental lost income in these instances.

Learn the Advantages and Disadvantages of Group Disability Insurance

If you’re unsure if offering group disability insurance is the right choice for your business, our team of benefits experts at Southpoint Insurance can help guide you through the decision-making process.

Should You Provide Short and Long-Term Disability Insurance?

Offering an employee benefits package is a great way to entice employees and reward them for their work. Benefits packages can be a huge deciding factor when a prospective employee is considering joining your team. But as a business owner, you have to consider whether offering disability insurance is worth the cost and what portion of the premium you can feasibly cover.

Fortunately, group insurers offer great rates for disability insurance. Even if you choose not to cover any costs, employees are likely to pay for their coverage through your group plan instead of opting for an individual disability insurance policy. Plus, group plans are more convenient than individual plans because employees don’t have to undergo a medical exam to get covered. Most importantly, offering short and long-term disability insurance gives your employees peace of mind that a medical emergency won’t drain their savings.

Person with an arm cast accepting a workers' compensation claim payment from an insurance professional

Find the Right Group Disability Insurance Plan

Group disability plans can vary dramatically based on the insurance company providing coverage. It can be overwhelming to pick the plan that your employees will rely on during life-changing medical events. That’s why our benefits experts at Southpoint Insurance will break down your coverage options and offer a variety of quotes. We have decades-long relationships with only the top insurance carriers, so we know which carriers can provide the right choice for your business. Contact us today to learn why hundreds of companies trust us to provide their group disability coverage.

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