While dental and eye care are usually the second and third most popular employee benefits after health insurance, employers should consider adding short-term and long-term disability insurance to their benefits portfolio. Why? Because disability insurance protects your employees from an interruption in income in case of an injury or accident. So, let’s go over the trends in short-term and long-term disability insurance and examine the strategies to encourage employee participation.
The Trends in Long Term and Short-Term Disability Insurance
There isn’t a business owner who doesn’t struggle with the difficult decision of how to resolve the situation when someone in your company misses a certain amount of work due to an injury or illness. Over the previous decade, there was a rise in access to both short and long-term disability insurance plans for the private sector and government employees.
Furthermore, low enrollment is an employer’s biggest frustration with providing short-term and long-term disability insurance. It’s hard to persuade people that disability insurance is an excellent investment without providing them with proper education. If your workforce seems uninterested when you provide short or long-term disability insurance, it’s possible your workers don’t understand how it can benefit them. Also, they might not realize how typically inexpensive the disability insurance is for the immense value.
Tactics to Enhance Employee Participation
A great way to improve benefit participation is by covering a more significant percentage of the premium. Lowering employee premium expenses will enhance enrollment. Also, consider covering 100% of a primary benefit that replaces 40 percent or half of the income while allowing the employees to buy up to a more generous income replacement of 60 or 70 percent.
In addition, employers who pre-select (pre-checking a box) disability insurance for their employees during the enrollment process see higher enrollment rates than those who do not. In doing so, they encourage the human tendency of inaction to assist overcome a status quo bias. Lastly, the best way to enhance employee participation is to auto-enroll everyone and cover the total cost of the premium. This helps when you provide other voluntary coverage options like an accident, cancer insurance, and critical illness.
Is your small business thinking about providing short-term and long-term disability insurance to your employees? Reach out to us today!
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