Share This Article:

Why employees need disability insurance


Being prepared for the worst-case scenario

With unemployment at historic lows, employers are increasingly looking for ways to stand out with candidates. One way to do that is to offer a robust and competitive benefits package.

Many small employers are offering medical, dental and vision insurance – but fewer are offering access to disability coverage. According to the Bureau of Labor Statistics, 42 percent of private industry works had access to short-term disability policies, and 24 percent had access to long-term plans. Among state and local government workers, 26 percent had access to short-term coverage and 38 percent had access to long-term disability coverage. 

For many employees, outside of health, what’s more important than protecting their paycheck? Here are a few things employers and employees should know about disability coverage:

How much disability insurance do employees need?

The answer depends on a variety of factors, such as income, savings, lifestyle, and years until retirement. Guardian Life, a leading insurance provider of long-term disability, has developed a helpful Disability Income Coverage Calculator to help you calculate the level of disability insurance you may need, depending upon the factors listed above.

Should I subsidize disability coverage for employees?

Generally, when employers offer disability coverage, they pay the full cost of coverage for most works. From the Bureau of Labor Statistics:

Private industry employers in 2018 paid the full cost for 85 percent of workers with short-term disability coverage and 94 percent of workers with long-term disability coverage. State and local government employers paid the full cost for 87 percent of workers with short-term disability coverage and 83 percent of workers with long-term disability coverage.

Bernard Benefits has more than a decade of helping employers of all sizes offer competitive benefits. To learn more about how we can help your organization, click below to request a free consultation with a Bernard Benefits advisor.New Call-to-action

Share This Article:

Related Posts

Slightly increased contribution limits for 2020. Here's a breakdown of what you and...

Your organization may be eligible for a premium rebate The Affordable Care Act limits...

Most insurance companies cover the flu shot as preventive care Summer’s barely over,...

ACA tax back in place for 2020 The Affordable Care Act requires insurers offering...

Submit a Comment