Group disability insurance is a valuable part of an employee benefits package that protects your employee’s ability to continue to earn a living and be productive should they become disabled outside of work/not due to a work-related injury or illness.
Group Disability Insurance Options
Disability insurance is designed to replace a portion of an employee’s income in the event of a disabling illness or injury. The two basic types of group disability insurance are short-term and long-term disability.
Short-Term Disability Insurance
Short-term disability (STD) replaces a portion of income for a limited period, usually after the disabled employee has exhausted their available sick leave. Depending on the plan, and if it is integrated with the company sick leave policy, the STD plan will usually pay out benefits anywhere from 9 to 26 weeks.
Long-Term Disability Insurance
Long-term disability (LTD) replaces a portion of a disabled employee’s income after the employee has used up both sick leave and short-term disability benefits. The duration of the benefit can vary depending on the plan. The most common group LTD plan pays benefits out to the employee’s Normal Social Security Retirement Age.
Group Disability Insurance Costs
The cost for group disability insurance depends on multiple factors including type and location of business, employee census data including occupations and salary, premium share paid by the employer, and benefit levels and percentages in the disability program implemented. Reese Insurance Group will help you design and implement the group disability program you and your employees need at the most competitive cost.