Group Disability Insurance

February 8 ,2012 by admin

An average person’s income and expenses statement will have one or two sources of income paychecks, bonus and numerous items of outflow such as housing loans, groceries, children’s school fees and so on. How long will you be able to stay afloat in case a sickness or an injury keeps you from going to work? Is it fair to expect your employer to keep paying you for days you do not turn up to work? You do not want to contemplate a situation where all your savings are wiped out and you become dependant on your spouse’s income or begin selling your investments. This is why all of us need insurance to aid us in our darkest hours. Laws state that an employer covers his employees under the group disability insurance.

There are two kinds of group disability insurance namely short and long term disability insurance. Short-term disability insurance includes sickness and temporary disability benefits. It offers employees recompensation of a part of salary to aid them to meet their living expenses when they are sick. Long term disability insurance protects you from the consequences of a permanent disability. Ensure that your employer covers you under both short and long term disability insurance. If your employer fails to provide such a policy for you, it would amount as an offence punishable by law.

Majority of insurance companies that offer group long term disability insurance cover you for a 2-year, 5-year or 10-year period. Others give you benefits up to 65 years of age. Without a doubt, the last one grants the maximum amount of coverage. On the other hand, you also need to understand how the short-term group disability insurance functions. If you are eligible and you fall sick or suffer a fracture or other injury that keeps you away from work for say, a couple of months, then you can claim insurance benefits. Typically, you will be paid 50 to 75 percent of your salary. Such a policy can cover you up to six months of leave.

In case your sickness is permanent or you have suffered an accident that has made you physically challenged for the rest of your life, a group long term disability insurance will provide you benefits as per the plan. You should check out policy details if you are eligible. Normally, you need to have completed a specific period of employment and must be a full time employee to be eligible. Then, after six months, you can claim benefits under this policy. You will be paid around 80% of your wages.

A lot of care should be taken when opting for a particular plan. Long term disability insurance rates vary depending on several factors. Length of the payout is the most important one. For employers, it is wise to have group long term disability insurance for your employees, since costs will be less compared to individual long-term disability insurance rates. They are a wonderful way to guarantee your employee’s family a peace of mind. They will not be obliged to undergo a shattering financial state of affairs if it turns out that your employee without prior notice is incapable of working due to poor health or injury. It is best to go for a plan that offers both short and long term disability insurance. If you contact an insurance agent, you will see that there is a wide range of options available. Ask for best quotes from a few different providers. Since long term disability insurance rates prove a bit expensive, you will need to hunt a little to get affordable rates. It also pays to read the policy document and understand the terms and conditions well yourself. A sales rep might paint a very rosy picture, but you need to look into the fine print and judge for yourself how different options will work out for your employees. A few simple steps to take care at the time of selecting a policy can save you and your employees from a lot of stress in the future. An important factor you want to consider is age demographic of your employees. If you have more employees over 40 years of age, then chances of one or more of your employees falling seriously ill are higher. Thus, having a good disability insurance policy becomes a priority.