Understanding The Need Of Disability Insurance From an Employer’s Perspective

No one intentionally wants to suffer from an injury/accident and lose their ability to work and cover daily expenses, however this can happen to anyone. Even after progressing so much in various technological aspects, there is still no tool available in the market that can predict/prevent accidents or injuries. This is beyond anyone’s control but what we can do is get advise from the best disability Insurance company as an employer before a worker gets involved in a major accident or suffers from a major illness. With this, you can give your employees some peace of mind by telling them that they won’t lose everything when a mishap occurs. If an illness or injury puts any of your employees out of work, disability insurance will assure them a continued source of income. Keep reading to learn if it is something you need for your business and employees.

What Exactly Is Disability Insurance?

Disability insurance pays a significant portion of an employee’s income when they are unable to continue their work due to a non work-related illness or injury. There are basically two types of disability insurance: short-term and long-term. Employers/business owners can offer either or both, that depends on various factors.

Short-term disability pays a portion of the policyholder’s salary for a short time-frame. The time period varies depending on the policy purchased. In most scenarios, it usually covers three to six months after the incident took place.

Long-term disability is generally more expensive and comes into play when the employee (holding the policy) is unfit for work for at least six months. The best feature of this It can be extended for years, even until the policyholder retires or reaches the age of 65.

Many businesses should understand the importance of disability insurance. Physician disability insurance, for instance, is crucial for healthcare professionals who know the difficulties disabilities can impose on an individual. Disability insurance can also benefit self-employed contractors, considering the fact that there are many dangers associated in a contracting work. Many policies also cover rehabilitation costs to help employees get a smooth transition to work.

Who Needs It?

You are required to purchase short-term disability insurance for your employees if you live in a place where this type of insurance is mandatory. States where professional disability insurance are mandatory are:

• California
• Hawaii
• New Jersey
• New York
• Rhode Island.

As a small business owner, you can qualify for voluntary group disability policies if:

You employ three or more eligible employees (eligible employees need to buy health insurance that your business supports, wherein money will get deducted from their salary to pay for the insurance).

Consider the points mentioned in this article and get assistance from a disability insurance company to benefit your employees.

Author: The author is a blogger and the article is about disability insurance.

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EZTDB Joined: August 14th, 2019