When the worst does happen and an employee finds themselves injured and unable to work, they need to be protected. That's where disability insurance comes in. So what is disability insurance and how can it benefit your employees?
Disability Insurance Explained
Disability insurance, also called DI for short, is a voluntary employee benefit that provides financial assistance to injured or ill employees who can't work. DI is similar to workers comp in many ways, but it also covers injuries that occur outside of the workplace. Most injuries and illnesses that prevent an employee from performing their job duties are covered and DI will continue to pay out for a long time for employees with serious and long-term disabilities. There are a few exceptions, however. Most notably DI doesn't pay out in the case of self-inflicted injury or disability.
Disability Insurance is Useful to Employees of All Ages
You may still be wondering if DI is really all that useful for younger employees, surely they are less likely to face a serious illness or disability, right? That may be true, but another fact is that 1 in 4 employees today will become disabled before they reach retirement age. Another fact is that you can't possibly predict when it will happen. A young employee could get into a serious accident tomorrow and become unable to work for decades. Suddenly putting off DI doesn't seem like such a great idea.
Without DI, even a short-term injury or illness can be financially devastating. Now imagine that they can't work for a whole year. In an age where many employees are living paycheck to paycheck missing work simply isn't sustainable without some kind of outside assistance. DI provides that assistance and it provides employees with the peace of mind of knowing that their disability doesn't have to be the end of their livelihood.
Disability Insurance Adds Value to Your Benefits Package
Employees love having a choice in their benefits, and voluntary benefits like DI provide them with that. As with any other benefit, to reap the maximum return on your investment you need to educate your employees and get them engaged with their benefits. This is especially true with DI given that many young employees see it as a luxury and not a necessity. Once they understand the all of the benefits that DI provides, they will be thankful that they have it as an option.
Disability Insurance is Good For Business
When considering the benefits of DI as an employer there are many things that might not be obvious at first glance, things like lost productivity, the cost of training new employees, and the possibility of losing a key employee to disability. Modern DI plans include tools that help employees rehabilitate and get back to work so that lost productivity is minimized as much as possible and key employees are able to return as soon as possible.
Those are just a few of the ways in which DI benefits employees of all ages. Please contact us at Summerlin-Roberts today to learn more about offering your employees DI and other valued benefits.