Protecting your future and your family's
Most people question whether they have enough, too much or the right kind of life insurance, but rarely have they thought about how they could survive financially with no earned income. In reality, disability insurance is as important as life insurance. Taking no precautions for a disability is like gambling against the odds. A disability can have a devastating impact on a families finances. Many people turn to their employers, assuming they will be taken care of by their company's disability plan. Or, they believe that the government provided Social Security program will cover their expenses. Even if a person is covered by Social Security, the program may not pay enough to cover all family expenses.
Disability insurance can replace a portion of your income when you are unable to work because of injury or illness. There are two major types of disability coverage.
- Short-term Disability (STD) insurance protects your employees from temporary loss of income caused by an illness or injury. STD also shields the employer from having to pay an employees wages while disabled. Allowing the money's to be redirected for paying overtime or temporary help during their absence. STD pays a percentage of the employees salary if they become temporarily disabled (excluding on-the-job injuries, which are covered by workers compensation insurance). A typical STD policy provides a weekly portion of the employees salary, usually 50, 60, or 66 2/3 percent for 13 weeks to 26 weeks. Most policies have a cap, meaning they provide a maximum benefit amount per month.
- Long-term Disability (LTD) insurance is an important benefit for the employee. The inability to receive a pay check during a disabling illness or injury would surely bankrupt most employees in a short time. Smaller organizations having fewer resources are more vulnerable when an employee has a long term illness. LTD picks up where STD leaves off. LTD cover full time (over 30 hours), permanent employees. These plans are designed to start paying benefits after a minimum required period of disability, commonly either 90 or 180 calendar days, and to pay for a "long-term" either until the employee can return to work or until age 65. LTD provide partial salary replacement (usually 60%) during an extended period of disability while the employee cannot work. An added benefit to the employer is having an independent, objective professional deal with the employee, eliminating the employer having to make tough decisions regarding the severity of the disability or illness and the employees ability to do their job.
- Individual Disability insurance STD and LTD is also an option if your employer does not offer group disability insurance or if you feel the existing coverage is inadequate. Individual disability pays a flat amount each month and in most cases will not pay more than 80% of current salary.
Eilers Insurance Associates, LLC has a comprehensive network of top providers who can cover you. We are your source for policy ratings, reviews and comparisons on products that will provide the financial protection you, your employees and your families deserve.
