Disability Insurance: The Safety Net Your Employees Need

Stuff happens.

If you don’t help your employees plan for the unexpected – as mixed-up as that sounds – they’ll have a much harder time dealing with it.

Providing your employees with short- and/or long-term disability insurance offers benefits for both parties. It ensures that your workforce is financially stable, and helps families prepare for difficult situations that could occur in the future.

Be sure that you’re offering employees robust disability insurance plan options, and educate them on its importance. These efforts will translate into savings for your organization. When your employees are financially stable, they’ll be effective contributors within your company.

Why disability insurance?

Disability insurance acts as a safety net in the event that your employees were to suffer an injury causing them to become disabled or otherwise unable to continue working at their job.

It can pay some or possibly even all of their salary.

The insurance can be temporary during their recovery period or it may be permanent.

The covered disability may be the result of an accident, an injury occurring at work or a serious illness like cancer or a heart attack, for example.

Disability insurance means protection

Your employees don’t know what the future holds.

No one plans for a diagnosis or a life-altering injury.

It’s critical that employees have a financial safety net in place for themselves and their family.

While losing the income of a paycheck or two may be feasible, a year or even two without pay can be disastrous to their finances.

It brings about the possibility of exorbitant debt, bankruptcy or the loss of a home  –  any of which could put an employee in a vulnerable position.

Disability options

Your employees should understand the two basic types of disability insurance available:


  • Short-term disability insurance, which will usually replace about 80% of their income for a brief period of time. Typically, this length of time is between 60 and 180 days. For example, if an employee knows that she’ll be undergoing a procedure that will keep her out of commission for 6 weeks, it may be in her best interest to obtain a short-term disability policy.
  • Long-term disability insurance is for the instance that an employee may end up being unable to work for 180 days or more. Usually, about 60% of the salary will be covered, however, the policy’s coverage can continue for the rest of the employee’s life.


Assessing disability coverage needs

Help your employees avoid making the mistake of assuming they don’t need coverage, require only the minimum coverage, or invest in too much coverage.

Working with a group benefits’ provider that can customize your company’s program options and offers assistance with walking employees through the plans.

It’s important for employees to evaluate how much disability coverage they need by first establishing a budget for each month  –  or how much money they need to maintain their current lifestyle.

Next, help them identify expenses they can remove or reduce in the event that they become injured. Some examples include commuting costs, eating lunch out, clothing for work, and so forth.

This will give them a general idea of how much disability coverage to invest in.

Preparing for the future

Employees may not believe they need disability coverage or more comprehensive coverage.

Educating your workforce about their options and the repercussions about not having enough disability insurance to maintain quality of life will go a long way.

If your company wants to reassess its disability insurance program offerings and cost, or you’d like to calculate how to help employees save, explore your options by working with a group benefits provider that has industry expertise and knowledge. 

Where does your disability insurance program fall short?


Leave a Reply

Your email address will not be published. Required fields are marked *