Why disability insurance is more important than ever
Just a few months ago, when Americans were enjoying one of the longest economic expansions in history, only 41 percent of adults said they would cover an unexpected $1,000 expense using savings, while four in 10 would borrow money.1 Things look different now, with nearly everyone facing additional financial stress. However, if you provide disability insurance for your employees, both of you may be a bit more comfortable with their current situation. Here’s why:
Disability insurance is financial protection
By design, disability insurance is meant to replace a portion of an employee’s income if they become ill or injured and are not able to work. These days, knowing you will have some income if you become sick can go a long way to reducing financial stress.
It lets you protect your investment in your workforce
Short-term disability benefits begin after a short elimination period, such as seven days, and typically last 13 to 26 weeks. Long-term disability benefits kick in later, often after short-term benefits end, and can provide payments for a specific number of years or until the employee reaches retirement age if the employee remains disabled.
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
Disability insurance may include an Employee Assistance Program
An Employee Assistance Program (EAP), often provided as part of disability insurance, offers employees services such as counseling sessions for stress, grief, or relationship conflicts, and support through legal and financial experts. In times where in-person visits are not possible, most counselors can provide virtual services to help employees get through difficult times and back on track.
Like most disability income insurance policies, they contain certain exclusions, waiting periods, reductions, limitations and terms for keeping them in force. Ask your representative about costs and complete details.
Equitable is the brand name of Equitable Holdings, Inc. and its family of companies, including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company with main administrative headquarters in Jersey City, NJ; Equitable Advisors, LLC (member FINRA, SIPC); and Equitable Distributors, LLC. The obligations of Equitable Financial and Equitable America are backed solely by their claims-paying abilities. All group insurance products are issued either by Equitable Financial or Equitable America, which have sole responsibility for their respective insurance and claims-paying obligations. Some products are not available in all states.