Group disability insurance is provided in a single policy that covers an entire company or group. It can be a valuable part of an employee benefits package that serves to protect your company’s most valuable asset – your employees. An agent at Douglas & Lanier Agency in McMinnville, Tennessee, can work with you to structure a group disability program to suit the needs of your company or group.
Group Disability Insurance Options
Disability insurance is private insurance designed to replace a portion of an employee’s income in the event of a disabling illness or injury. Employers can choose from a range of insurance options. The basic types of group disability insurance are short-term and long-term.
Short-Term Disability Insurance
Short-term disability (STD) replaces a portion of income for a limited period after the disabled employee has exhausted the available sick leave. Depending on the plan, STD will pay out benefits for anywhere from 9 to 52 weeks.
Long-Term Disability Insurance
Long-term disability (LTD) replaces a portion of a disabled employee’s income after the employee has used up both sick leave and short-term disability benefits. The duration of the payouts varies depending on the plan. Some LTD policies will payout for a certain number of years (such as 2 to 5) or until the disabled employee reaches a certain age (such as 65).
Group Disability Insurance Costs
The cost to employers for group disability insurance typically ranges between 0.25% and 0.5% of total compensation, whether there are two employees or 2,000. This makes it a good investment for small business owners from an employee recruitment and retention standpoint. Various factors may affect the cost of disability insurance. Our agent at Douglas & Lanier Agency can help you find the coverage you need at the lowest available rates.