Beyond the Benefits: Long-term Disability


Today we're exploring another important aspect of Group Benefits: Long-term disability.

As an employer you're making decisions as you go into the upcoming open enrollment period about what you're offering to your employees. Let's take a look at some of the aspects of long-term disability, and why it's important to understand how it works as compared to short-term disability.


Your employees are your business. They ensure your business runs smoothly - or not. Naturally, for the benefit of them, their families, the health of your business as well, you want them properly insured and want to keep all matters running as smoothly for your business as possible. When an employee falls sick or is injured, what then?


In 2014, almost 40% of private industry workers participated in short-term disability programs and almost 35% participated in long-term disability programs, according to the Bureau of Labor Statistics. In New York State all employers must carry Statutory DBL (disability) coverage which at a minimum is 50% of an employees' weekly salary - to a max of $170.


SHORT-TERM DISABILITY


"Short-term disability can run concurrently with statutory long-term disability for a period of 3-6 months. The short-term benefit is usually 50%-60% of monthly salary to a max established by the employer," says CH Group Benefits Expert, Ben Fox. "These policies are short lived and depending on the age of the employee will leave them in financial hardship within a years' time."


PEACE OF MIND


Long- term disability policies pick up coverage once short-term ends. There are no laws requiring employers to offer long-term disability, however it can be a positively viewed incentive by talent when they're considering your offering vs. another company's. The benefit can be 50%-60% of a max established by the employer. The benefit can last several years or can be extended until social security age. As you can imagine, this provides peace of mind for the disabled employee. Here at CH Insurance, as we walk you through the maze of offerings and opportunities within Group Benefits, our Expert Team guides you specifically based on your priorities, your industry, and the outcomes you ultimately seek.


CH Insurance is an independent insurance agency based in Syracuse, NY. The firm offers commercial insurance, personal insurance, group benefits, risk management, worker's compensation. Their talented team abide by their mission, vision, and values of striving to be the finest independent insurance agency in Upstate New York. They're in your corner!

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