How disability insurance helps protect your employee investment
With unemployment at near all-time lows and the cost of hiring a single employee estimated in the thousands of dollars, small employers need to do everything in their power to keep current employees productive and satisfied.
So, what happens if one of your employees is diagnosed with a serious illness, suffers an injury, or becomes pregnant?
When faced with a disability, employees may:
- Need to take days off of work to recover
- Have trouble supporting themselves financially without a regular paycheck
Each year, poor health costs U.S. employers $530 billion.2 Of that:
- $198 billion is attributed to impaired performance, such as chronic health conditions, depression, anxiety, etc.
- $82 billion is attributed to opportunity costs of absence, such as missed revenue, costs of hiring temps, and overtime
- $178 billion is attributed to wages and benefits, such as incidental absence due to illness, workers’ comp, and FMLA
- $73 million is attributed to workers’ compensation treatments and other costs
Protect your investment with disability insurance
More than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age4. Disability insurance can replace a portion of an employee’s income if they become ill or injured and are unable to work. Since 46 percent of Americans cannot cover a $400 emergency3, you can see how disability insurance is essential to many employees.
Short-term disability (STD) benefits begin after a short elimination period, such as 7 days, and a typical duration is 13 or 26 weeks of benefits. Long-term disability (LTD) benefits kick in after STD benefits end and can provide payments for a specific number of years or until the employee reaches retirement age.
The right combination of STD and LTD from the right carrier will do more than just provide payments to support your injured or ill employees. It will also help them get back to work by providing compassionate and thorough disability claims management, such as:
- Partial disability payments for employees who can work part-time while disabled
- Payments that can be spent on workplace modifications to help disabled employees get back on the job, or keep them there
- Assistance with rehabilitation services
- An Employee Assistance Program (EAP), which provide services such as counseling sessions for stress, grief or relationship conflicts, help in finding child or elder care, and support through legal and financial experts
By adding short- and long-term disability insurance to your benefits package, you can help your employees manage a challenging time, so they can be happier, healthier, and more productive at work. It’s a simple and effective way to protect your investment in your workforce.
2 “Poor Health Costs US Employers,” Integrated Benefits Institute
3 Disability Insurance: A Benefit for All, https://blog.disabilitycanhappen.org