Group Life & Disability Insurance

As an employer, you have the opportunity to provide important protection benefits of life, disability and long-term care insurance to your workforce. Providing these valuable benefits to employees can help round out your benefit package making working for your company even more attractive for current and prospective employees. In some cases, there may be minimum employee group sizes to offer certain benefits.

Whether you already offer these employee benefits or are considering them, our employee benefit specialists can help you to evaluate your options and design a program that fits your needs.

Group Life Insurance

Providing life insurance for eligible employees provides them with a valuable benefit to help protect their loved ones with the flexibility of selecting or changing beneficiaries as needed. As an employer, it can provide you benefits:

  • Increased loyalty and reduced turnover of workers
  • Tax-deductibility of premiums paid by employer
  • Additional attractiveness of overall benefit package

Life insurance and key employees

You may want to consider other ways that life insurance can be used as an employee benefit that can increase loyalty, make overall compensation more attractive for key employees and protect your business.

  • Consider offering select key employees a special life insurance plan as an additional incentive for staying on or as a bonus.
  • Consider purchasing life insurance with the company as beneficiary on key executive or other employees if their death could have significant economic impacts on the company’s performance.
  • Consider life insurance as a means of funding a business continuation plan to fund purchase of the company by family members, key employees, etc, who may otherwise not have the financial assets or funding to do so.

Group Disability Insurance

Many employers offer disability insurance for their employees; however, the plans vary greatly, and some may not offer adequate coverage. Furthermore, any disability payouts from an employer’s policy are subject to taxes, while payouts from individual policies are not. Individual disability coverage is generally much more expensive than employer disability coverage; nevertheless, you should review any policies your employer has taken out, and consider purchasing individual coverage if the policy is insufficient.

Disability insurance comes in two types: short-term and long-term.

  • Short term disability insuranceis a nice bit of peace of mind. If you become temporarily unable to work for a short period of time due to sickness or injury not related to your job, short term disability will pay you a percentage of your salary—typically 40% to 70% of it while you recover. For example, if you earned $1000 per week, and your policy pays 60% of pre-disability wages, you’re benefit would be $600 per week.Short term policies are time-limited and generally last between 9 and 52 weeks. You may then have the option of moving to a Long Term Disability policy or applying for Social Security Disability Insurance.

    According to the Council for Disability Awareness, common causes of short term disability claims are Illnesses, such as cancer, heart attack, and diabetes; and injuries, or chronic pain conditions such as back pain or arthritis.

  • Long Term Disability Insurance– When the benefits of short term disability insurance run out, you may be very grateful to have long term disability coverage. It generally goes to work after the short term benefits expire. Long term rates usually pay a lower percentage—say, 50% of your earnings—which may last for several years or longer.A business owner or executive shares the same concerns as his or her workers do—what would happen to you and your family if you should become disabled? The risk of disability is greater than most people think, and most individuals don’t consider disability insurance on their own. Having group disability insurance that provides income for eligible employees, who are partially or completely disabled due to an injury, pregnancy, disease or other covered disabling illness, is of value in many ways.

Group Long-Term Care Insurance

Spending a long time in a nursing home, or under home care, is not something people like to think about; nevertheless, as medical science increases the average life expectancy, a growing number of seniors are finding themselves unable to live independently. At the same time, extended nursing home and home health care is becoming extremely expensive. Long-Term Care Insurance covers these expenses, and is something people in their late 50s to 60s should seriously consider purchasing.
Providing a group long-term care insurance benefit can:

  • Distinguish your company from others to help you attract and retain the best employees.
  • Provides financial security for employees helping them to maintain their quality of life.