Small Group Disability Coverage
and Your Employees
Long term disability covers your
employees in case they are
injured completely or partially
and are unable to work.
Pregnancy and Mental health are
included as disability.
Disability effects a much
greater percentage of the
workforce than you might
expect. Just about 30% of the
current workforce will use some
form of disability before they
retire.
Why offer disability to
your employees?
Disability is a benefit your
employees will value greatly but
may not afford the expense
themselves on their own. Rates
for group disability through an
Employer can be less expensive
than a premium found through an
individual disability policy.
If an employee is partially or
fully disabled the salary you
pay them is no longer available,
but of course they still have
the living expenses plus now
medical costs and possibly not
adequate reserves to get them
through the injury period.
Counter to intuition, single
employees often need disability
coverage more than married
employees as they don’t have a
spouse with potential income to
support them during a disability
period.
What type of coverage and
benefits are available?
When you sponsor a long
term disability plan for your
employees your benefits can vary
depending on the amount you want
to pay, and the level of
benefits you want to receive.
Here’s an example of some
benefits you can expect to see:
Benefit Payout Amount:
Usually available for between
40% and 60% of salary level, in
ranges of 5 years up to age 66
2/3. Some California Small
Group disability carriers offer
more premium plans for select
industry types with greater
percentage reimbursement of
pre-disability salary level and
past age 65.
Waiting Period:
Waiting periods frequently will
be seen at the 90 day mark for
benefits from the point of
injury. To reduce premium cost
some of the bargain premium
plans raise the benefit waiting
period to much greater lengths.
As the owner of the
company, how do I qualify for
coverage and to what
amounts? The
percentage of benefit level is
paid out based on w2 payroll
levels, so as the owner of the
company you usually need to be
on full time w2 salary to obtain
a long term disability plan
through your business in
California. It is possible for
owners to qualify for special
premium incentives in certain
cases.
How much Small Group Long
Term Disability should we buy?
Contact us
to determine appropriate
amounts for your situation. You
can adjust benefit payout
amounts, waiting periods, and
maximum benefit lengths specific
to you and your employee needs.
One solution does not fit all
companies. You may have some
employees willing to face a
longer waiting period for a
better percentage benefit. Or,
you may have low income
employees who would rather have
no waiting period for benefits
but willing to accept a smaller
percentage payout to get the
immediate funds in case of
disaster.
We are committed to providing
you and your employees the
financial protection and peace
of mind you deserve through the
strongest disability carriers
available on the California
Small Group insurance market.
Call
or email us
today for a free consultation
and proposal.
Other
important
resources:
California
Small Group
health quote
California
Small Group
online
doctor
listing
California
Group
Enrollment
and
Eligibility
Center
