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Short-Term & Long-Term Disability Insurance | ADPIA

Short-Term & Long-Term Disability Insurance: Coverage to Fall Back On

Helping employees prepare for the unexpected can relieve substantial financial burdens.

Disability Insurance

Accidents, illnesses and debilitating conditions can strike without warning and result in expensive consequences. The risk of becoming disabled is greater than one might think. It’s estimated that 1 in 4 of today’s 20 year-olds will become disabled before they retire1. Factors such as excess body weight, high blood pressure, and tobacco use may increase the risk.

But, too often, the cost of disability insurance can seem daunting to employers, especially smaller businesses. Whether your business is established or just starting out, ADPIA can offer you simplified access to essential, affordable short- and long-term disability insurance coverage through our carrier relationships.

Short-Term Disability Insurance

Short-term disability insurance pays a percentage of an employee’s salary for a specified amount of time, if they are ill or injured, and cannot perform the duties of their job. Coverage usually starts anywhere from one to 14 days after a covered employee suffers a condition that leaves him or her unable to work.

Many times, employees are required to use sick days before short-term disability insurance begins. There is usually a different policy for short-term disability for sickness versus an injury.

Depending on the short-term disability insurance plan, main qualifications generally state that:

  • Employees need to work for the employer for a certain amount of time before coverage begins
  • Employees need to work full-time, usually 30 hours or more a week

A typical short-term disability insurance benefits package may include:

  • Percentage of weekly salary paid out (typically between 50% - 70% of weekly salary)
  • Duration of short-term disability benefits (typically between 10 to 26 weeks)
  • Maximum amount of time covered under this disability program

Keep in mid that disability insurance requirements vary by state, so it’s important to be familiar with the laws that may apply to your unique business.

Long-Term Disability Insurance

When an employee cannot work for an extended period of time, a long-term disability insurance plan can help cover a portion of his or her missed salary. Long-term disability insurance usually begins after a short-term disability policy has reached its end.

As an employer, you can choose how much long-term disability insurance coverage to elect for your employees. Most plans cover 50-70% of monthly salary. The duration of benefits also varies. Some plans will cover 5-10 years’ worth of disability to anyone qualified, while others will pay out until age 65.

Plan rules dictate certain terms under which employees can file for long-term disability, including:

  • Employees need to work for the employer for a set amount of time before coverage begins
  • Employees need to work full-time, usually 30 hours or more a week

The true value of short-term & long-term disability insurance

Disability insurance helps to address basic, physical needs including daily living expenses — giving your employees the opportunity to recover without the added stress of missed paychecks.

A sudden loss of income due to a disabling illness or injury is a grave financial risk. Helping employees prepare for the unexpected can relieve such substantial financial burdens. By offering short-term disability insurance and long- term disability insurance, you’ll be able to enhance the overall scope of your benefits package and provide important coverage to employees.

Affordable disability insurance solutions offered through ADPIA

At ADPIA, we offer simplified access to essential disability insurance coverage. We’ll connect you to nationally recognized carriers to provide numerous, cost-effective options that can be customized to meet the needs of your business. Best of all, you can count on a knowledgeable, licensed agent to help you navigate the many disability insurance options available.

1 Source: www.disabilitycanhappen.org

The information contained in this website represents the products and services available through one of the business groups of Automatic Data Processing Insurance Agency, Inc. (ADPIA). ADPIA services mid and large size clients with various insurance products and services through its other business groups.