Disability coverage is purchased to protect employees against the loss of income due to a disability, typically covers 60% of base salary to a maximum of $5,000 a month.
Disability coverage is thought to be as important for a wage earner to purchase than life insurance. Statistics show that 8 out of 10 people between the ages of 25 and 65 will become disabled for 90 days or more sometime during their lives. If you have employees over 50 years of age, there is a one and four chance that your employee may become disabled for 6 months or more before they retire.
Typically, employers offer both short-term disability and long-term disability coverage. Short-term disability covers employees who can’t work because of non-work-related disabling illness or accidental injuries, while long-term disability covers employees who can’t work because of long-term disabling illness or accidental injuries that happen on or off the job. Most long-term coverage emphasizes programs that help people return to work
Disability income coverage can be the solution to a number of business problems and it can be used as a versatile business tool. For example:
• Disability income coverage can help meet the need of competitive employee benefits for everyone on your payroll. This is an attractive win-win benefit that can protect employees, boost morale, and relieve the company of its ethical (if not contractual) responsibility to keep disabled employees on salary.
• Disability income coverage can help meet the need for deferred compensation funding for you and other key employees.
• Disability income coverage can help meet the needs for funds to execute a buy-sell agreement. Most buy-sell agreements address a change in ownership at either the owner’s retirement or death.
Call the McDaniel Hazley Group for an appointment to discuss your employee benefit needs at (816) 531-7500 or visit our Web site at www.mhgins.com.