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.
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