Disability Insurance

Disability insurance is one way to improve company morale and provide your employees with peace of mind knowing they are covered in the event they are injured and unable to continue working. eBen offers professional consulting and brokerage services for companies that are interested in offering disability insurance to their employees, and will work with your executives and HR team to create a tailored benefits strategy.

What Is A Disability?

Disability insurance is a popular type of work-related insurance that ensures the employee continues to receive compensation if they are unable to work due to disability caused by a covered event. Employer-sponsored disability insurance is an important policy option that companies can offer to their employees.

The cost is covered either by the employee themselves via payroll deductions, by the employer, or both. Employer-sponsored group disability insurance programs are usually far more affordable than insurance that would be purchased individually outside of work.

Top Causes Of Disability

The Importance Of Group Disability Insurance

Individual disability insurance is expensive and requires extensive underwriting not limited to health questions and physical examinations. Group disability insurance allows employees coverage at a discounted group rate with little to no health underwriting required, majority of the time it is guarantee issued. Group disability coverage also offers employers peace of mind to know if one of their employees is not able to work due to an illness or off the job illness, they have income protection while they are disabled.

Types Of Disability Coverage Offered

Group Short-Term Disability

• Generally pays a percentage of a disabled employee’s weekly salary
• Benefits are typically paid for 3-6 months based on employer-selected plan design and durations available from the insurance carrier

Group Long-Term Disability

• Generally pays a percentage of a disabled employee’s monthly salary, typically 60%
• Employer selects benefits duration – anywhere from two years to Social Security Normal Retirement Age

Individual Disability Insurance

• Pays a percentage of a disabled employee’s monthly salary, up to 75%
• Employer selects benefits duration – anywhere from two years to Social Security Normal Retirement Age
• Provides higher maximum benefit to cover top incomes

Critical Points Of Disability Insurance

Critical points that we take into account when advising and implementing a disability plan:

• Establishing appropriate elimination periods – periods that coincide with their company PTO and leave policies
• Job classifications – accurate descriptions for optimal coverage amounts
• Salary determinations – hourly employees, salaried employees, commissioned employees, etc.
• Tax implications – premium paid for by employer or employee; premium paid on a pre or post-tax basis. If the premium is not taxed then the benefit will be taxed.
• Structure of the disability plans – structures so that there is no interruption of benefits between the short-term disability policy and the long-term disability policy. These two benefits need to be structured in consideration of one another
• W-2 preparation and reporting

Call eBen Today For Disability Insurance

We are ready to help you manage and acquire your disability insurance, from fielding quotes from multiple vetted insurance carriers to the integration of your insurance plan, we will walk you through the process to completion. To learn more about our services and how we can best assist you, contact us today.