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Group Disability Insurance

The scope of disability is far-reaching. For working-age individuals, disability exists when a medical condition reduces a person’s ability to perform his or her job duties.

 

Why is it so important to offer group disability coverage?

Disability trends can impact overall medical costs. Research shows that 60% of all lost workdays due to short-term disability are a result of the five most expensive diseases and illness in the United States.  Knowing this, carriers report that employers can tailor their disability benefits to minimize workplace absences. Lost workdays not only decrease productivity, but can also cut-off an employee’s source of income at a crucial time. This means a negative impact to personal finances during a time when their out-of-pocket medical costs are significantly increased due to an illness. If employers actively compare medical and disability claims to determine where to spend health and wellness dollars, as well as encouraging communication and education regarding healthy lifestyles and the cost of medical services, a reduction in cost is possible.

 

Consider the loss when an employee goes on disability:

• Lost productivity
• Cost of replacing workers
• Declining employee morale
• Increased healthcare costs


What are some advantages of short-term group disability coverage?

• Pays a fixed weekly amount or a set percentage of income
• Waiting periods from one to fifteen days
• Benefits periods up to fifty-two weeks
• Offered many times as a voluntary benefit
• Can cover up to two-thirds of pre-disability income
• Coordinates with Long-Term Care
• Maternity is covered for females

 

What are advantages of long-term group disability insurance plans?

• Pays a set percentage of employee's regular income generally to age 65 and covers incomes to $100,000
• Ability to “carve out” employee group or offer different classes of benefits
• Coordinates to pick up after Short-Term coverage ends
• Benefits can be designed to offer "own occupation" benefits, cost of living increases, and tax-free income in the event of a disability

 

What types of group disability insurance plan options are available?

• Employer-paid
• Employer-paid with employee buy-up
• Employee-paid
• Administrative service only


What should employers look for in a group disability plan?

Today, many employers are re-examining their benefits with an eye toward maximizing total value for their employees and themselves.


Employers are encouraged to consider the following:
• How well does the plan meet the diverse needs of all employees?
• Is it flexible enough to change as their lives change?
• Does it recognize the full family impact of disability?
• Can it help you reduce risk and control costs?
• As your company experiences growth and change, will your plan meet the needs of your company?
• Will your coverage features facilitate and assist your efforts to keep your employees productive and, in the case of a disability, assist you in a return-to-work effort?

 
Please Contact your Telamon representative for assistance if you are interested in learning more about group disability insurance coverage for your employees.  Telamon welcomes the opportunity to help your organization examine its plan design(s) and make recommendations for improvement.