Who needs disability insurance?
Employers who want to make sure their employees are taken good care of if something was to happen to them.
Employees can take out personal disability insurance themselves, however, businesses have this as part of their employee benefits package often find that it is a great way to recruit staff and keep them.
Disability insurance takes care of an employee who is unable to work because of illness or injury. This is normally pay equal to 60% of their average salary, and is often paid as tax-free income.
You have a choice too:
1.) Offer short-term coverage (which is usually capped at six months)
2.) Offer Long-term coverage (which runs for several years or even until retirement age).
3). Offer other disability insurance options and include payments that specifically cover the employee’s mortgage, other loans, etc.
This insurance is a great way to ensure that injured or sick employees take the time necessary to get healthy and return to work.
One important note: Don’t confuse disability insurance with some other programs. It is different than workers’ compensation insurance, which is mandatory and paid for by employers that pays out if an employee is injured at work. Nor is it social security disability insurance, which is the government program for people with serious long-term conditions who are unable to take on employment.
Want to know more about disability insurance for employees? Reach out! Flatlands Jessup is here to help!