Offering short-term and long-term disability to your employees can help give you a leg up on the competition when hiring great people. But how exactly do short and long-term disability work? What are the differences? And how can you use them for the benefit of your business?
Short-term disability insurance
Short-term disability lets an employee get paid a portion of their wages if they’re unable to work for a while. It makes sure that an employee can still cover their living expenses if they have a serious illness or injury.
Some conditions that can be covered by short-term disability are:
- Back problems
Short-term disability coverage can last anywhere from 9 weeks to two years, depending on the policy. However, short-term disability payments usually won’t kick in until about a week or two after the employee is unable to work.
Once short-term disability runs out for an employee, it may be time to move them into long-term disability if they still can’t come to work.
Long-term disability insurance
Long-term disability is an extended version of short-term disability. This benefit can help if there is an injury or illness that keeps someone from working for an extended period of time (you guessed it – depending on the policy).
First, long-term disability usually covers 50-70 percent of an employee’s salary. The typical length of long-term disability is 5 – 10 years, but a worker can claim disability as long as they are disabled until they’re 65.
Conditions that are usually covered by long-term disability are:
- Musculoskeletal disorders
- Nervous system disorders
- Accident injuries
Additionally, mental health issues can also qualify as a disability.
Some details can still be a little fuzzy when you’re deciding whether to offer short-term disability insurance, long-term disability insurance, or both to your employees. Our insurance agents are experts at figuring out the particular details of what will fit your business. So, give us a call at 404.352.0304 or fill out our online form to start getting customized quotes on benefits that could be crucial to your business!
What does an employee need to claim disability?
Some employers require the employee to work for them for a certain amount of time before being eligible for the benefit. Some employers require that the employee use all of their sick days before they qualify for disability. Some employers require full-time status or even additional paperwork for the employee to claim disability.
When you apply for short and long-term disability insurance, your carrier may also place certain exclusions on pre-existing conditions or conditions where disability won’t really help the employee’s condition. So, it really just depends on how you would want it to work for your individual business.
How is disability insurance different than workers comp?
Workers comp is specifically different from disability benefits because the former takes care of injuries or serious illness that happens at work or due to work-related activities. Disability benefits are for injuries that happen outside of work but are still severe enough to put someone out of commission for a while. There are massive benefits for your business should you choose to offer disability benefits.
Why should I offer short or long-term disability?
Companies that offer disability insurance and even other group benefits have major advantage when they’re hiring employees. It can really help you show that you value your employees.
So, why wait to improve your business from the inside out? Connect with one of our insurance experts today, so that they can get to know you, your business, and what will make your employees the happiest! Just give us a call or fill out our online quote form to get in touch with our team.