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Bridging the income gap. Disability policies for employees.

On Behalf of | May 16, 2022 | Disability Benefits |

Many employers provide disability income protection for employees, a benefit that grew rapidly post-COVID. A short-term disability policy provides benefits for a handful of months for employees unable to work due to injury or illness. Upon expiration of those benefits, long-term disability benefits could provide coverage for an extended period of time. Most long-term disability benefits provide for roughly 60% of an employee’s base salary.

Options for financial security

Private income protection insurance, also known as individual disability insurance, is an option to cover this financial gap. Some benefits of this type of policy often include but are not limited to the following:

  • Payout amounts based on income at the time of purchase (with possible options to increase coverage if income increases)
  • A waiting period (based on the specific policy)
  • A maximum benefit period (or until recovery of the illness or injury)

It is important for employees to note that every policy differs. Some may provide for longer waiting periods in exchange for a decrease in premiums. Others may differ in maximum payout coverage.

However, a rider that accounts for inflation, particularly in the current economic environment, is a benefit employees should not ignore, especially given the rising costs of food, gas and other essentials.