We work with several carriers to provide income protection in case a disability results in a loss of income. Typically, these products pay 60% of income to a predetermined amount based on the individual’s income. This can be short term or long term depending on the type of product desired.
Employer-Sponsored Coverage can be purchased through several carriers. Amounts as low as $10,000 - $500,000 depending on the annual salary of the employees. The weekly benefits vary from $100 - $5,000 depending on an individual’s income.
Short-Term Disability typically pays the first day of accident, 7th or 8th day of the accident and for 13 26-week duration. The benefits usually pay 60 to 66 - 1/3% of income to a certain income level set by the employer. Each insured’s individual wages will determine what benefit they are eligible for.
Long Term Disability typically has a 90 to 180 day wait before benefits begin. If a Short Term Product is also being used, the waiting period usually coincides with the end of the Short Term product. The benefits usually pay 60 to 66 - 1/3% of income to a certain income level set by the employer. Each insured individual wages will determine what benefit they are eligible for.
This can be paid by the employer or can be offered on a voluntary basis (the employees pay the full premium). Each carrier has specific participation rules but some carriers go as low as two enrolled employees.
Eligibility would depend on the size of the employer. Participation may vary from carrier to carrier. These ancillary coverages can be separated into two classes based on criteria such as hourly vs. salary and management vs. mom-management.