As of 2023, roughly two-thirds of all U.S.-based companies across all industries provided an option for disability insurance, according to data from the Society for Human Resources Management.
But not all employees take advantage, many struggle to get past the confusing policies and paperwork and find it difficult to get clarity around the associated costs. However, if your company offers this coverage and the policy is in your price range, OneDigital Central Region’s Voluntary Benefits Sales Leader Corey Kines, believes you may want to double check your assumptions about disability insurance and consider enrolling.
In the recent article “Should You Buy Disability Insurance Through Work?” published in The Wall Street Journal, Kines shares the importance of taking a closer look at the risks associated with your job and your current state of health now that more companies are offering these policies.
Disability insurance is designated to soften the financial fallout for employees who can’t work for some time as a result of illness, injury, or another qualifying condition. For a regular fee, you get income back for a predetermined amount of time.
These are products you hope you never have to use. You may think ‘God, it’s coming out of my paycheck every month – am I ever going to use this?’ but, then if you do have to use them, you’re glad that you have them. Behind health insurance, long-term disability insurance is the most important product to have.
— Corey Kines, Voluntary Benefits Sales Leader, OneDigital Central
Short-term disability protects a portion of employee income for those who intend to return to work after recovering from an injury or illness. Many short-term disability policies also allow pregnant workers to take maternal benefits after giving birth.
Additionally, most short-term disability policies provide coverage ranging from three to twelve months, which is determined by state law and individual insurance.
While some employers already incorporate short-term disability insurance into their benefits – whether by design or by law, Kines recommends that all employees, regardless of age and income add long-term disability to their plan.
Long-term disability insurance pays employees a portion of their income, between 60% and 80% of total salary, beyond the point of short-term disability.
Read the full article from the Wall Street Journal here.
Understanding employee benefits can be confusing and overwhelming. Check out OneDigital’s Breakroom for resources that cut through the confusion, so you can feel empowered when making significant decisions around your healthcare and finances.