Disability
Disability insurance partially replaces income lost due to injury or illness. Disability can strike at any time. Its financial impact can be staggering. 62% of disabilities occur off the job. They are not covered by workers' compensation insurance. Social Security responds to severe disabilities only that last a year or longer or that will result in death.
- According the National Underwriter One in seven of those in the workforce will become disabled before age 65 for a period of five (5) years or longer.
- Life Insurance Selling reports that an employee in his 30's is more than three times likely to become disabled as they are likely to die before age 65.
- The National Safety Council says that 1,027 people suffer a disabling injury due to accident every hour
- The Housing and Home Finance Agency of the U.S. government reveals that 48% of all home foreclosures are the result of disability, while only 3 percent occur as a result of death.
There are two types of disability insurance. Short Term Disability (STD) is most frequently designed to address disablement over a period of time lasting from 0 days to up to 6 months. Long Term Disability (LTD) provides income replacement for periods ranging from 6 months to normal retirement age. The total amount of disability benefit is dependent on the insured's earnings, the plan's waiting period, the maximum benefit period and the definition of disability. Disability insurance is the most overlooked and yet can be the least expensive employee benefit to offer. Despite the high incidence of disability, still more employers offer group life insurance than group disability plans.
Active claim management can help shorten the duration of disabilities through early intervention, rehabilitation and return-to-work efforts. Effective disability claims management can significantly reduce an employer's exposure to both the direct and indirect cost caused by a disablement. As much as 81.2% of the cost of a disability to the employer is in the expense of replacement employees, reduced productivity and lowered morale.
Because disability insurance is highly valued by employees, it will complement your efforts to attract and retain a quality workforce.
For a quotation or to apply for individual medical coverage, please visit the page "Contact Us".