Employers recognize the value of short and long term disability insurance as a benefit. These products offer peace of mind, because if an employee suffers a disabling illness or accident, the employee can focus on recovery knowing their financial stability is protected. By providing competitive benefits to employees, employers can attract and keep employees while increasing productivity, as well as the overall health and well-being of the workforce.

Since disability protection is something employees need and want, it is sensible for employers to provide the coverage. Beyond the needs of employees, these benefits offer important advantages to employers. The hidden or indirect costs of disability — such as salaries for replacement employees or the value of lost productivity — are an expensive problem for businesses.

Disability insurance is both a benefit, health, and productivity tool. The rehabilitation and management tools built into a group disability plan can yield substantial savings to employers, particularly in large organizations. Such programs help employees return to productivity, relieving huge direct and hidden costs of disability.

Disability insurance coverage can be paid for in the following ways:

Fully paid by the employer.

Cost-shared with employees.
Offered as an employee-paid, voluntary benefit.

In many cases, employers fund a basic plan to protect employees, and employees may then add supplemental coverage to better address their individual financial circumstances.

Disability Insurance