To reap from the rewards of short-term disability insurance, employers must compare the open costs with the long-term benefits
When employees are unable to work for a certain time because of an injury or serious illness distinct to their job, it can impair them and their employers. For instance, the workers may experience financial hardships due to lost wages, while the employers experience delays in productivity. A resolution to this problem is offering short-term disability insurance to your employees. It’s an inexpensive voluntary insurance offering that overlooks long-term disability coverage.
How Does Short-Term Disability Insurance Operate?
Short-term disability insurance substitutes income benefits that offer a percentage of pre-disability earnings weekly when workers are not working due to a disability claim. It occasionally covers off-the-job accidents and illnesses that workers’ compensation wouldn’t cover. Short-term disability insurance differs based on the state and insurance provider, including:
- With a traditional plan, employers pay the full premium for their employees.
- Employers and their employees contribute to the cost of benefits in a contributory policy.
- Employees pay for the disability benefits under a voluntary plan.
- In a core buy-up policy, the employees have the option to purchase more coverage.
Why Short-Term Disability Matters
Short-term disability claims usually occur due to illnesses and injuries that aren’t the result of a work-related activity, such as:
- Maternity leave
- Recovery from surgery
- Car or other momentous accident
- Medical procedure
- Short-term illness
Even though employees can start obtaining short-term disability payments for accidents on day one, the usual start date for payments is the eighth day after a claim is filed.
Key Advantages of Offering Short-Term Disability Benefits
To reap from the rewards of short-term disability insurance, employers must compare the open costs with the long-term benefits. For example, if employees cannot afford to participate in the disability program, it might reduce rather than enhance their morale. Employers who thrive in balancing cost versus benefits may be able to:
- Entice new talent
- Hold team members
- Increase employee engagement
- Expand employee financial wellness
What Are the Next Steps?
The MWE Partnership can help you receive cost-effective disability options personalized to achieve your business needs. Call us today at 410-394-9617 to acquire how your employees can prepare for the unexpected.
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on X and LinkedIn for the latest voluntary benefit news!