An accident or illness that leads to disability can cause significant financial hardship. Short-term disability insurance can help you and your employees continue providing for your families if you are unable to work. Our employee benefits experts and insurance specialists can help you understand the regulations governing short-term disability insurance and your options for providing additional levels of coverage.
For example, if your business is located in NJ or NY, state law requires you to provide a certain amount of minimal coverage for the first 6 months the employee is unable to work. However, the established amount typically covers only a small percentage of the employee’s regular income, so you may choose to provide supplemental insurance (up to 60% of total salary). If your business is located outside NJ and NY, you may select a complete short-term disability plan for your employees.
Both options allow you to give your employees peace of mind, knowing that they can count on a meaningful level of income replacement in the event of an unexpected health problem.
Unfortunately, short-term disability coverage may run out before your employee is able to return to work. An employee who remains disabled after 6 months may be left without any source of income, unable to provide for his or her family and facing potential financial ruin.
A private long-term disability insurance policy can be the ideal solution for your business and your employees. Our benefits planning experts and insurance specialists can provide practical, independent advice on the many variations in long-term disability policies and custom-design a group plan that meets your specific needs.