If you have 10 or more employees, a group disability benefit may be a valuable addition to your employee benefits package.
 
Group disability plans typically provide a totally disabled covered employee with a benefit of up to 60% of their pre-disability income, to a specified maximum, such as $10,000 a month. It can help to cover personal expenses as well as provide business overhead protection.

 Advantages of a group plan include:

• Plan design flexibility. In many cases, employers can elect a plan design that fits their budget and works for their employees. For example, an employer may choose a guaranteed issue plan, which gives employees the option to purchase coverage regardless of their current health condition.
• Lower premiums. Group rates tend to be lower than individual rates.
• Potentially portable. Depending on the plan design, covered employees may be able to take their coverage with them if they leave the company.
• Premium payment flexibility. Premiums can be paid by the employer, the employee, or a combination of the two, using pre-tax or after-tax dollars.
• Tax deductible premiums. You can take pre-tax company-paid premiums as a business tax deduction.
• Recruitment and retention tool. Having group disability insurance in your benefits program helps attract and retain quality employees.

Drawbacks to group disability plans include:

• Total disability definition. Many group policies require an insured to be totally disabled to receive benefits.
• Taxation of benefits. If you offer the perk of paying the premiums for your employees, any benefit they receive will be considered taxable income for them, which reduces the actual dollar value of the benefit.
• Benefit caps. Benefit amounts are capped, which may make it difficult for you and your higher-paid employees to replace a large enough percentage of income.

Game Plan
When offering voluntary disability benefits or buy-up options to your employees, access to information is important. Determining how much disability insurance your employees need and can afford requires them to examine their income, assets, expenses and liabilities, and then to figure how long they could keep everything going if they were unable to work. Theodore & Associates can help you every step of the way! Call or email us today!

Disability insurance is not always top of mind for people — many of us likely think that it's only needed in the event of a serious accident or diagnosis. In truth, Disability Insurance is important for everyone.

According to the U.S. Social Security Administration, 1 in 4 of today’s 20-year-olds will become disabled during their working years. In addition, Guardian’s Workplace Benefits Study also reveals that 55 percent of employees found the financial impact of their disability incident to be major or devastating. Despite these statistics, only 54 percent of working Americans have disability—down from 65 percent in 2017.

The Theodore & Associates team wants to showcase the value of disability insurance for both employees and employers thinking about offering this key benefit.

1) Disability insurance can increase employees' financial security
Research shows that 66 percent of employees whose disability happened more than six years ago feel that they still have not completely recovered financially. However, more than half of Americans live paycheck to paycheck, which means they are unprepared to go without a single paycheck should they be out on disability. Disability insurance can help alleviate some of the financial strain caused by unexpected disabilities. 

2) Disability insurance can be customized to your specific company's size, needs, and financial portfolio.
Employer-sponsored programs have features such as online enrollment, seamless payroll deduction and no medical exam requirement to enroll. This makes disability insurance efficient and attractive to employees.

But if your company cannot provide an employer-sponsored benefit, you may be able to provide access via an employee-funded disability insurance product. This helps shift the cost to the employees, yet helps demonstrate an employer’s commitment to enhancing their employees’ financial security. It’s a win-win.

3) Disability insurance can help integrate absence management
One critical component of an effective disability management program can be the integration of absence management capabilities. As more states pass paid leave laws, more companies need help navigating the complexities of absence management. Managing absences is a demanding job for even the most sophisticated HR teams. More worrisome is that if employers mismanage absences, they leave themselves open to costly lawsuits, fines, misuse of leaves and other issues. A well put together disability insurance plan can help deliver a holistic, integrated plan that includes both disability and absence management for their clients.

4) Disability insurance can boost employee satisfaction and retention
Research validates that utilizing disability insurance can sway employee perceptions of employers and enhance overall employee satisfaction (71 percent versus 54 percent). Employees with disability insurance—especially if they had it at the time of their incident—are more satisfied with their employee benefits and much more likely to feel that their company cares about them.

Additionally, a positive experience with a return to work (RtW) program can go even further to bolster an employee’s perception of its employer. For example, 70 percent said they feel their company cares for them after completing a RtW program. This is notable and something to consider when speaking with carriers about a RtW program, how it’s implemented, and its success rate. There’s a lot of value for both the employer and employee in helping employees return to work through an effective RtW program.



These are just some of the many benefits of one of the most misunderstood employee benefits available. For business owners and employees alike, there are misconceptions about not just the necessity but also the cost of disability insurance.

If you're considering offering a disability insurance benefit but have questions, or if you want to make sure your plan is still right for you, the Theodore & Associates team can help. Together, we'll explore a plan that works for your business and financial goals. Contact us today to start the conversation.

There are lots of things no one wants to talk about – disability insurance is one of them. But the longer you ignore it, the less protected you are against long term financial risks due to unexpected illnesses and injuries.

Read on for guidance and answers to common questions about disability insurance. This information can help you get started and make the best decision based on your specific needs.

1. If you have people who depend on your income – or if you depend on your income – you need disability insurance. You might be surprised to learn that social security disability benefits are not available if you are expected to be out of work for less than a year. One year without income could deplete your savings and have a significant impact on your finances.

2. Disability insurance replaces a portion of your income when you can’t work. If you were unable to work due to illness or injury, disability insurance can help to pay your most essential expenses, including food, utilities, school tuition, home and car payments.

3. Most long-term absences are due to illnesses, not accidents. While many people think that disabilities are typically caused by accidents, the majority of long-term absences are actually due to illness.

4. You need it even if you’re young and healthy. Almost 1 in 4 of today’s 20 year-olds will become disabled before reaching age 67. What’s more, it’s easier and less expensive to get disability insurance when you’re young and healthy.

5. The risk of a disability during your working years may be greater than you think. The risk of suffering a disabling illness or injury may be more likely than you realize. In fact, at least 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 before they reach retirement age. Disability insurance helps you maintain a steady stream of income when you can’t work due to illness or injury.

6. A good rule of thumb is to protect 60-80% of your after-tax income. You will need to meet your essential living expenses if you should become disabled. 72% of consumer expenditures cover essential needs like housing, food, transportation, health care and education. This easy-to-use Disability Needs Calculator can help determine what amount of disability insurance is most appropriate for your situation.

7. Some disability insurance is better than no disability insurance. When budgets are especially tight, it still makes sense to buy enough disability insurance to cover rent or mortgage payments and keep your family in their home should you become disabled. Disability insurance is more affordable than you may think. For example, a healthy 35 year-old male may obtain a $1,000 monthly benefit for an initial premium of approximately $25 per month.

8. Make sure you know how much disability insurance you get at work. Check to see if disability coverage is made available to you through your employee benefits package. You might want to look carefully at coverage, however, since group benefits alone may not be enough due to potential benefit limitations and types of income covered.

9. There is no substitute for good advice. Seek advice on how much insurance is right for your needs. Talk to a trained financial professional or perform research online. Whichever approach works best for you, taking action to protect you and your family with disability insurance is an important part of a strong financial plan.

10. The financial strength and reputation of the company you buy from matters. When you purchase disability insurance, the company you buy from is making a long-term commitment to you. If you become disabled, there is a chance you will receive benefits for an extended period of time, so it makes sense to buy from a company with experience, financial strength and a solid reputation.

Call us today to talk about getting you a Disability Insurance quote!