Employers can offer a range of perks to employees, and an increasingly popular option is that of disability insurance.
Understanding the advantages that this type of cover offers is the first step to adopting it at your organization, so let’s go over what it is and what the main benefits are so you can make an informed decision.
Quick intro to disability insurance
Simply put, disability insurance is a package that protects people from the financial ramifications of suffering an illness or injury which leaves them disabled and unable to work as a result.
Both short-term and long-term policies are available, with the former kicking in quickly after the disabling incident and covering a moderate recovery time of anywhere from two months to a year, while the latter is geared towards more serious, chronic issues that could last a lifetime.
In either case, employees who become disabled temporarily or permanently will receive a monthly payout equivalent to a percentage of their salary, ranging from 50 to 70 percent, depending on the policy and the provider.
Private packages are available
It is worth pointing out that employees don’t need to rely on their employer for disability insurance, as private packages can be snapped up, such as Noble Oak income protection insurance.
So even if you decide not to offer it in-house, it could be worth recommending it as an option to team members to give them peace of mind and a safety net for their families if they are the main earner in the household.
Recruitment & retention become simpler
From a business perspective, providing disability insurance is a no-brainer if you are eager to win over the most talented individuals when recruiting for roles, and also retain the most valuable employees once they have joined your organization.
Showing that you care about the health, happiness and financial stability of all team members will give you the edge over any competitors that do not offer this benefit as standard.
There are of course costs to bear when it comes to paying for disability insurance, but these will be justified by the productivity improvements and lower recruitment expenses that come with enhanced employee loyalty in the long term.
Further savings are achievable
Another point to make about businesses that choose to provide their employees with disability insurance is that you don’t need to pick up individual plans for everyone, but can instead invest in a group plan which covers all team members and nets you a hefty discount as a result.
Group plans have the added benefits of being flexible, meaning that you could choose to foot the bill yourself or hand this off to employees at a reduced rate to lessen the burden on the business while still pitching it as a perk.
Likewise, any premiums you pay can be deducted from your tax bill, which is an additional incentive to adopt disability insurance.
Peace of mind is priceless
There is no getting away from the fact that if employees know that their income will be protected even if they become disabled, it will weigh on their minds.
In turn, this will lead to improved morale throughout the workforce and will allow team members to focus on their duties, rather than being distracted by fears about the fallout of any serious health condition or injury.
While you should still endeavor to compare cover options and weigh up various policies before you make a commitment, it is generally sensible to snap up disability insurance for your employees, whether or not this is a legal mandate in the state you call home.
Story by Jessica Perkins
Share
Contributors
