Steven G. Newman, CLU, LUTCF

Disability Income Insurance Employees

Disability Income Insurance Employees

Disability income insurance can help protect an employee’s ability to generate income if they become too sick or injured to work. If your employees become disabled, a group long term disability insurance policy can help protect a portion of their income and provide a fundamental layer of security for their financial future.

Offering supplemental individual disability income insurance in addition to a group long term disability plan is one way to provide higher levels of protection for your employees without incurring any additional costs. Coverage is available at the worksite through a guaranteed standard issue offer, featuring simplified underwriting, or through a multi-life offer with full underwriting. Both offer discounted rates.

Disability income insurance can also help protect your employees’ ability to save for retirement. In the eventof a long-term disability, you need to ensure your employees are adequately protected.

Individual, Fully Underwritten Disability Income Insurance

Individual, fully underwritten disability income insurance can be offered to employees to supplement employer-provided group long term disability benefits. Typically, group long term disability benefits pay about half an employee's net monthly income. Employees who have an individually owned disability income insurance policy can protect a larger portion of their income and design the policy to fit their specific income needs. Individual disability income insurance coverage is non-cancellable, fully portable, and premiums may be available at a discount.

Guaranteed Standard Issue Disability Income Insurance

Guaranteed standard issue disability income insurance is supplemental individual disability income insurance for employees. This coverage may help protect a higher amount of income than a group long-term disability insurance policy alone. Supplemental coveragecan help bridge the gap between current earnings and benefits available through a group long-term disability insurance policy. Note that the two policies do not coordinate benefits; claim decisions are rendered independent of each other.

Advantages to employees:

  • Designed to replace a higher percentage of income when eligible for benefits under both policies
  • Simplified underwriting
  • Offers a permanent premium discount and is fully portable
  • Covers a portion of bonus and incentive compensation

Advantages toemployers:

  • Enriches employee offerings at no cost to employers
  • Allows for easy implementation