While life events, such as marriage, the birth of a child, and a move to a new city, are typically well-planned out, other moments in life seem to come in abruptly and created unexpected changes. Injuries, car accidents, and various illnesses can sideline someone for days, weeks, or even months on end. And while health insurance can cover employees up to a certain point, group disability insurance may be the better option offered by a business.

According to the Bureau of Labor Statistics, only 39 percent of Americans carry short-term disability insurance and only 33 percent carry long-term disability. Disability insurance can serve as a major financial support system for employees who will be out of commission for longer periods of time, helping them to maintain a standard of living and cut out financial stress.

Here’s a better look at why group disability insurance should be offered up by businesses looking to keep their employees safe and supported.

Types of Coverage

Disability insurance comes in two main types of coverage including occupation and own occupation. With any occupation, disability coverage sticks to specific types of disability. Any occupation may not begin to work unless the policyholder is deemed as unable to execute their daily tasks, even if they are unable to perform pre-disability tasks.

For own occupation, coverage kicks in when the policyholder is designated as unable to perform their pre-disability duties. This coverage is usually pretty common for professionals whose duties are more highly cognitive or “white collar.”

Potential Benefits of Offering Group Disability Insurance

For businesses thinking of offering group disability insurance to their employees, there are some initial benefits that present an opportunity to help said employees as well as the company as a whole.

First, there’s the cost of living adjustment. This automatic increase in benefit payments compensates for the ways in which inflation plays a role. It may be a predetermined threshold, such as 3 percent or 4 percent, or computed annually based on prices. This will help employees be able to stay within their budget while receiving a coverage amount that stays on par with the financial levels of the economy around them.

Next is partial disability riders, which allow policyholders who are deemed partially disabled to claim some benefits while utilizing their group disability coverage, even if they’re able to execute productive work.

Another benefit for policyholders allows them to purchase additional disability coverage at a later date. Additional purchase, as it’s known, is meant to offer coverage for the gap between what a policyholder can get from a current long-term policy and what they would actually need to maintain their current lifestyle.

Lastly, group disability insurance offers up a return to premium, which allows for the partial return of policy premiums paid following a specific time period. Return of premium benefits can vary, but the amount returned usually ranges between 50 percent and 100 percent during a specific time period.

About InsureMyWorkComp

InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.