Group disability insurance is provided in a single policy that covers an entire company or group. It can be a valuable part of an employee benefits package that serves to protect your company’s most valuable asset – your employees. An agent at Morin Associates LLC in Groton, Connecticut, can work with you to structure a group disability program to suit the needs of your company or group.
Group Disability Insurance Options
Disability insurance is private insurance designed to replace a portion of an employee’s income in the event of a disabling illness or injury. Employers can choose from a range of insurance options. The basic types of group disability insurance are short-term and long-term.
Short-Term Disability Insurance
Short-term disability (STD) replaces a portion of income for a limited period after the disabled employee has exhausted the available sick leave. Depending on the plan, STD will pay out benefits for anywhere from 9 to 52 weeks.
Long-Term Disability Insurance
Long-term disability (LTD) replaces a portion of a disabled employee’s income after the employee has used up both sick leave and short-term disability benefits. The duration of the payouts varies depending on the plan. Some LTD policies will payout for a certain number of years (such as 2 to 5) or until the disabled employee reaches a certain age (such as 65).
Group Disability Insurance Costs
The cost to employers for group disability insurance typically ranges between 0.25% and 0.5% of total compensation, whether there are two employees or 2,000. This makes it a good investment for small business owners from an employee recruitment and retention standpoint. Various factors may affect the cost of disability insurance. Our agent at Morin Associates LLC can help you find the coverage you need at the lowest available rates.