Why you should offer disability insurance to your employees

wheelchair in the office
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Employers can offer a range of employee benefits, and an increasingly popular option is disability insurance.

Understanding the benefits this type of coverage offers is the first step to adopting it in your organization, so let’s review what it is and what the main benefits are so you can make an informed decision.

Quick introduction to disability insurance

Simply put, disability insurance is a package that protects people against the financial ramifications of an illness or injury that renders them disabled and unable to work.

Short and long term policies are available, the former taking effect soon after the disabling incident and covering a moderate recovery period of two months to a year, while the latter is geared towards more serious chronic issues that could lasts a lifetime.

In either case, employees who become temporarily or permanently disabled will receive a monthly payment equal to a percentage of their salary, ranging from 50 to 70 percent, depending on policy and provider.

Private packages are available

It should be emphasized that employees do not need to depend on their employer for disability insurance, as private packages can be purchased, such as Noble Oak Income Protection Insurance.

So even if you decide not to offer it in-house, it might be worth recommending it as an option for team members to give them peace of mind and a safety net for their families if they are the main household maintainer.

Recruitment and retention just got easier

From a business perspective, providing disability insurance is a no-brainer if you are keen to win over the most talented people when recruiting for roles, and also retain the most valuable employees once they join your organization.

Show that you care on the health, happiness and financial stability of all team members will give you the edge over all competitors who do not offer this advantage as standard.

There are, of course, costs involved in paying for disability insurance, but these will be justified by the productivity gains and lower recruitment expenses that come with better long-term employee retention.

Additional savings are possible

Another point to make about companies choosing to provide disability insurance to their employees is that you don’t have to buy individual plans for everyone, but instead can invest in a group plan that covers all team members and offers you a significant discount as a result.

Group plans have the added benefit of being flexible, meaning you can choose to foot the bill yourself or pass it on to employees at a reduced rate to ease the burden on the business while presenting it as an advantage.

Likewise, any premiums you pay can be deducted from your tax bill, providing an added incentive to purchase disability insurance.

Peace of mind is priceless

There is no denying that if employees know that their income will be protected even if they become disabled, it will weigh on their minds.

This, in turn, will lead to improved morale for the entire workforce and allow team members to focus on their tasks, rather than being distracted by fear of the fallout from a serious health problem or injury.

While you should always try to compare coverage options and evaluate different policies before committing, it’s generally a good idea to buy disability insurance for your employees, whether or not they’re on term of office. legal in the state where you live.

Jessica Perkins Story

augusta free press
augusta free press

About Antoine L. Cassell

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