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:
Drawbacks to group disability plans include:
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!
Group life insurance shows employees you value what matters most to them - their loved ones, and it is an integral part of most employee benefits packages. When provided by an employer, employees appreciate the value of life coverage and the additional security it provides to their families.
Life insurance can help employees protect their loved ones.
Did you know more than 35% of all households would feel a negative financial impact within 1 month after the death of the primary wage earner? Having life insurance can help your employees have confidence that, should they pass away, their family will have a financial safety net to replace lost income, cover final expenses, everyday living expenses, and long-term obligations that may otherwise cause them financial strain. Life insurance can even be used to help fund a child’s education.
It’s a key benefit to help you attract and keep quality employees.
When candidates are searching for a new job, benefits are a main differentiator, and prospective employees tend to consider a position’s benefits before they apply. That includes life insurance. Whether you cover the premium or offer employee-paid, voluntary life insurance, group rates make coverage through an employer an affordable option for employees. Including life insurance in your benefit package can make you stand out against organizations competing for the same candidates—and help you hold on to the good employees you’ve already hired.
It can be a budget-friendly option for you to offer.
If you think offering life insurance to your employees is out of your price range, think again. There are plenty of affordable life insurance solutions available. You can pay all, part, or none of your employees’ benefits, depending on your needs and goals. And keep in mind, group life insurance premiums are based on an overall assessment of a company’s risk. Spreading that risk helps bring group rates down, offering an affordable coverage option for employees.
Offering life insurance can help you enhance your company culture.
For many employers, building a strong company culture is about creating an environment that brings your core values to life. Culture is often what drives employee satisfaction. It makes employees feel like they belong, like they’re valued. That’s why including life insurance as an employee benefit plays a solid role in shaping your culture. It shows you put your employees first, and that you’re an employer who wants to help employees have a more secure financial future. For this reason, offering life insurance can help you see improvements in employee turnover, not to mention a general boost in productivity and company loyalty.
The best life insurance policies can be catered to your business needs
Your business—and employees—are unique. Fortunately, you can customize your group life insurance to make it the right match for you. As you’re considering life insurance policies, think about these questions:
Theodore & Associates offers free, comparative quotes on group life insurance from multiple insurance carriers so you can get the best possible rate, whatever your group size or benefit goals.
Contact us to find out how to protect your employees with the right life insurance.
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.