Disability Insurance

Disability Insurance Provided By Our Agency

Disability insurance protects your employees if they are unable to work for a while. It’s a crucial part of any quality employee benefits package, and we can help you create an individualized plan that will meet all your needs.

What is Disability Insurance?

Disability insurance is, as the name suggests, insurance provided if an employee is disabled and cannot work. Unlike workers' compensation insurance — which offers benefits like partial wage replacement if employees get hurt on the clock — disability insurance provides partial wage replacement when employees become ill or disabled away from work and can't work.

In essence, health insurance benefits enable employees to seek needed medical care. Disability insurance replaces a portion of employee income when they can't work because of an illness or disability.

According to the Social Security Administration, 25% of all 20-year-olds will become disabled and unable to work sometime before reaching the age of 67. But unlike medical, dental, and vision insurance, very few people know that insurance products are designed to replace a portion of their income when they become ill or disabled and cannot work.

What does Disability Insurance usually cover?

Group Disability Insurance provides a percentage of pre-disability income if an employee is unable to work due to illness or injury for a specified period. The percentage of income that is covered can range, but typically employers purchase plans that cover 50 to 60 percent of income. A common misconception of Group Disability Insurance is that it can cover medical costs. This is untrue, as Group Disability Insurance only provides income or wage replacement benefits.

Group Disability Insurance plans also often consider disability payments or benefits that an employee may receive from other sources, like Social Security Disability Insurance (SSDI) or workers' compensation. Generally, policies are constructed so that the amount of employee income that is covered is reduced by the amounts payable by other sources so that the employee doesn't receive more compensation while disabled than while actively working.

Who needs Disability Insurance?

Group Disability Insurance applies to all businesses and is an essential consideration for companies looking to provide comprehensive benefits to their employees. In addition, while generally not required by law, a handful of states have state-mandated temporary disability benefits requirements for employers, including California, Hawaii, New Jersey, New York, and Rhode Island.

According to the 1985 Commissioners Individual Disability Table A, 50 percent of Americans will become disabled for 90 days or more between the ages of 35 and 65. Some of your employees may deal with a temporary or permanent disability during their careers. As a business owner, you should consider offering disability coverage when something like this occurs to minimize your employees' financial risk.

From the perspective of your employees, you need to offer Group Disability Insurance to protect them from the risk of losing financial stability in the event of an accident, injury, or illness. Not only does Group Disability Insurance protect your employees, but it also helps your business in attracting and retaining talent at your organization. These days, employees are becoming more and more aware of the kinds of benefits that employers are offering. Therefore, to be a competitive player for talent, you should consider offering Group Disability Insurance as a part of an attractive benefits package.

We know everyone has a different way of approaching disability insurance, which is why we offer personalized consultations! We have an extensive knowledge base and are happy to share it with you.

Reach out for the help your employees need from our Professionals. Our consultants will review all insurance options available so they can find one that best suits their needs.

Already have Disability Insurance? Switching is easy

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.