Over 30 million Americans were uninsured in 2020. Employers are often at the forefront of providing the right insurance coverage for their workers, including offering disability benefits.
But why should employers provide disability benefits? What are the benefits of disability insurance, and how can employers offer them?
That’s what we’re here to uncover today. Read on to find out more about offering disability benefits to employees and their overall importance.
What are Disability Benefits?
Disability benefits refer to employee insurance packages that allow employers to gain a steady income when they can’t work because of a disability. It’s a little different from other forms of insurance in terms of what it covers.
The Social Security System often offers disability benefits, but many purchase disability insurance on the private market. Many employers offer disability benefits as part of the overall employee insurance plan.
There are actually two main types of disability insurance: long-term and short-term. Let’s take a look at each one and analyze their different benefits to get a better sense of what employee disability benefits entail.
Short-Term Disability Benefits
Short-term disability benefits are a type of private insurance offered by employers. It lets employees collect an income after suffering an injury and can’t work due to a sustained disability.
After a certain amount of time, usually about a week or ten days, this type of disability kicks in. There’s usually a specified amount of time the employee gets to use these benefits, hence the name.
This time frame varies anywhere between 13 weeks to over 50. Employees usually go through a waiting period before the benefits kick in. That means they’ll use up some sick or personal days.
Long-Term Disability Benefits
Long-term disability benefits function pretty much the same way as their short-term counterparts, aside from the timeframe. Instead of lasting weeks, these benefits last up to several months.
This means employees receive long-term disability benefits for at least six months. Most disability benefit plans provide a percentage of an employee’s usual compensation. There’s usually a weekly or monthly limit as well.
Why You Should Include Disability Benefits
Accidents and illnesses can happen at any time. Employees aren’t immune to this, therefore a disability insurance plan is crucial to their well-being. It shows that you are a caring and accommodating employer.
This leads to a happier and healthier workplace since workers aren’t under the stress of having to find income when they’re impaired. It could even improve your company’s reputation or the quality of your new hires.
How to Offer Disability Benefits
Offering disability benefits to your employees is relatively simple. All you need to do is contact an insurance provider that fits your workplace benefits package.
After that, work out the details with the agents and incorporate the benefits into your employees’ insurance plan. Make sure you make a choice whether or not you want to provide short term or long term benefits.
Providing Employee Benefits
Disability benefits are crucial parts of any employee benefits package. Use this guide to understand what they are and how to incorporate them into your workplace today.
Are you looking for reliable disability insurance and benefit plans? Contact us today, and we’ll get you started on a solution right away!