What is Disability Insurance and How Do Employers

Best Cover Their Employees?

Disability Insurance Plans protect employees against the risk that illness or injury will interrupt or terminate their ability to work or earn a living. The term “disability” may include the inability to perform any work at all, or the inability to engage in the employee’s usual occupation.

While most people consider disability insurance a 'luxury' the fact of the matter is what would you do if you couldn't work for the rest of your life? How would you cope financially? Everyday we read of accidents or other mishaps which leave a person paralyzed or worse. Disability insurance is the insurance that would guarantee you an income in the case that you could not work.

To protect your employees should they be unable to work due to illness or accident, you will want to offer disability insurance. Coverage is available on a short and long term basis and plans can be paid for by employers or by employees, through voluntary benefits.

Short-Term Disability Benefit Plans

Companion Life
	Group Size: 2+	Forms
	States Available: Al
	Highlights:
	Employer-Paid Short-Term Disability Only 25% employer contribution required Guarantee issue starts at 3 lives Plans can be bought separately or together Voluntary Short-Term Disability Only 5 lives needed to enroll, regardless of group size Maximum flexibility - Eight plan designs and ten benefit levels available $10,000 AD&D benefit included for each employee Dual-option for groups 100+

Kansas City Life
	Group Size: 2+	Forms
	States Available: Al
	Highlights:
	Employer-Paid Short-Term Disability Flexible Employer Sponsored Plans All Guarantee Issue Two year rate guarantees available to qualified groups Easy claim forms: One claim form when STD and LTD are sold together

Principal Life
	Group Size:3+	Forms
	States Available: Al
	Highlights:
	Employer-Paid Short-Term Disability Flexible and affordable plan designs available Allows the employer to build a disability solution that is right for them up to a 70% benefit up to a $2,500 maximum weekly benefit elimination periods from 1 - 30 days customizable benefit duration options to integrate with LTD coverage Telephonic Employee Assistance Program included Top-notch in-house claim management and rehabilitation services Single claim form when STD and LTD are both sold with Principal Online claims status 24 hours a day

Long-Term Disability Benefit Plans

Companion Life
	Group Size: 2+	Forms
	States Available: Al
	Highlights:
	Employer-Paid Short-Term Disability Only 25% employer contribution required Guarantee issue starts at 3 lives Plans can be bought separately or together Voluntary Short-Term Disability Only the greater of 10 or 25% of the group required Choice of 2 year, 5 year or age 65 benefit durations 15% flat commissions on 1st year and renewal

Kansas City Life
	Group Size: 2+	Forms
	States Available: Al
	Highlights:
	Employer-Paid Short-Term Disability Flexible Employer Sponsored Plans Flexible benefit durations All Guarantee Issue Rich plan designs: Benefit maxiumums $1000-$15000 available for qualified grups

Principal Life
	Group Size:3+	Forms
	States Available: Al
	Highlights:
	Employer-Paid Short-Term Disability Flexible and affordable plan designs available Allows the employer to build a disability solution that is right for them up to a 66.677% benefit up to a $15,000 maximum weekly benefit flexible elimination period options Own occupation periods available from 1 year to the entire benefit duration Rehabilitation solutions and return to work incentives Variety of added benefits available, designed to enhance any disability package Telephonic Employee Assistance Program included Excellent claim management and rehabilitation services, offering support and encouraging return to work Online claims status 24 hours a day

How Disability Insurance Plans Work As An Employer

Typically, the employer provides coverage for disability insurance under an accident or health plan. The employer’s contribution to the plan is excluded from the employee’s gross income, and is deductible as an ordinary and necessary business expense to the employer. In the event of disability, amounts received by the employee are then attributable to the employer’s contribution.

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SHORT-TERM DISABILITY PLANS

A short term disability plan should take into account short-term benefits that run a maximum of six months to a year.

Below is a list of potential disabilities that could cause short-term disability insurance to kick in:

Amnesia Anemia Aneurysm Angina Pectoris Apoplexy Appendicitis Arthritis Asthma Back Disorders Blindness Brain Tumor Buerger’s Disease Bursitis Cancer Cardiospasm Cataracts Cerebral Concusiion Cerebral Palsy Cholecyslilis Chorea Crohn’s Disease Colitis Colostomy Convulsion Coronary Artery Disease Cushing’s Disease Cyslic Kidney Deafness Depression

Detached retina Diabetes Diverticulitis Ederno Emphysema Embolism Encephalitis Endocartis Epilepsy Fibrilation Friedreich’s Ataxio Gastrectomy Glaucoma Gout Hemophilia Hepatitis Hodgkins Disease Hypertension Kidney Stones Leukemia Lung disease Mastitis Meinere’s Disease Meningitis Multiple Sclerosis Murmurs Muscular Dystrophy Myacordial Infarction Nephrectomy

Nephritis Osteoarthritis Palsy Pancreatis Paralysis Parkinsons Disease Phlebitis Pituitary Gland Disorders Pleurisy Pnemothorax Polycustic Proctitis Psychosis Raynuad’s Disease Regional Enteritis Retinitis Rheumatic Fever Sarcaidosis Sarcoma Sciatic Splenectomy Stroke Thrombophlebitis Thrombosis Tuberculosis Tumor Ulcer Ulcerative Calits Varicose veins Vertigo

Should an injured or ill employee be away from work for longer than a typical sick leave but less than about six months, they would benefit from having short term disability insurance. Short term disability payments cover a percentage of lost salary due to injury or illness. Policies vary regarding the duration of short term disability, but six months is a typical duration.

WHAT IS LONG-TERM DISABILITY INSURANCE?

Long term disability insurance protects your employees from catastrophic illness or injury that would prevent them from earning their salary. Long term disability coverage helps to replace income for an extended period of time—usually from one year to the age of retirement.

Contact us to learn more about short term and long term disability insurance plans