According to a recent survey, four in 10 American workers live paycheck to paycheck. This means that an unexpected illness or injury that takes someone off the job for more than a few days can have devastating consequences for many of your employees who depend on their wages to survive.
You as an employer can help by offering group disability insurance to your employees.
What it covers
This insurance helps replace a portion of a worker’s income if they loses their income due to an injury or illness. Generally, the benefits are paid monthly for the duration of the illness or injury, and only cover a portion of lost wages.
Typically, disability insurance policies will replace between 50 and 65% of a worker’s income.
Broadly speaking, there are two kinds of disability insurance policies — short-term disability insurance for events that disrupt income for less than 90 days, and long-term disability policies, which cover benefits for a longer period of time. Illness or Injury- How Your Business Can Protect Your Employees