Disability insurance has become a valuable part of a comprehensive employee benefits package. Along with filling in financial gaps for employees, it is an essential component for employers that need a competitive benefits package that attracts and retains talented employees.
In addition, tools supplied by disability insurers can deliver significant savings to employers. It can mitigate costs dealing with finding replacement workers and costs incurred through time and productivity losses.
For your company to reap those benefits, it’s important to ensure that it is has the best disability insurance solution in place. Here are three key issues to consider when selecting a disability plan:
Benefit Selection and Funding:
By offering an integrated STD and LTD package, it may be easier to utilize claims experts early on. This will often enable employers to identify the best way for a person to return to work. In regards to funding, many employers offer a basic plan to protect employees. Employees may then purchase supplemental disability coverage that helps to address their specific needs.
Coordination of Benefits
While many companies offer disability insurance, it is also true that many employees have trouble understanding how the benefit actually works. That fact is highlighted by this quote, which was part of a recent study released by the Consumer Federation of America and Unum: “87% recipients agreed that employers should do a better job of explaining the disability plans offered to employees, as many lacked a full understanding of the key features of their coverage prior to their disability.”
Of course, your actions in that regard may depend on your company’s resources, in addition to the support that you are receiving from your broker. But by setting forth the goal to have a quality plan that addresses each aspect of the disability — including effective communication, customer service, and simple integration with other benefits — employers and employees will eliminate many potential headaches and reap the rewards of this benefit.
The overall success of your company’s disability insurance will come from a variety of plan components. These typically have a direct impact on the cost of the plan and how claims will be paid. Here are a few of the components to look into:
- Waiting or “Elimination” Period
- Definition of Disability
- Residual or Partial Disability
- Income Replacement
- Benefit Integration
I hope that you find this overview helpful as you seek to select and implement the best disability insurance plan for your company. In a future blog post, we will expand upon the specific plan components that may significantly impact the success of your program.
If you have any questions in the meantime, please call our team at 877-332-6387 or drop us a note through the online contact form.
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