As an employer, you want to make sure you are providing your employees with the best possible benefits package. This not only helps attract and retain top talent but also shows you care about your employees' well-being. Two important types of insurance that should be considered in every benefits package are short-term and long-term disability insurance, and it’s important to value the distinctions between the two to make the most effective investment in your employees’ well-being.
What Is Short-Term Disability?
Short-term disability insurance pays a percentage of an employee's salary if they cannot work due to a covered illness or injury. The length of time benefits are paid varies depending on the policy, but most plans will pay benefits for anywhere from six weeks to six months. Short-term disability insurance is typically offered by employers and is usually paid for by the employer and employee through payroll deductions.
What Is Long-Term Disability?
Long-term disability insurance is a type of insurance that provides benefits to individuals who are unable to work for an extended period due to a disabling condition. The duration of the benefits varies depending on the policy but typically extends for two years or until the individual reaches retirement age. There are two types of long-term disability insurance: private and public. Private policies are offered by employers or private insurers, while the government offers public policies. Long-term disability insurance can provide much-needed financial support to individuals unable to work, but it is important to understand the limitations of the coverage before purchasing a policy.
Which Type of Insurance Should You Provide for Your Employees?
The type of insurance you provide for your employees should be based on your company's needs and budget. If you can afford short- and long-term disability coverage, this is the best option for your employees. If your employees are generally healthy and are likely to return to work in the short-term, then short-term disability may be the wiser investment. But if your employees have a chance of needing extended periods off of work, it might be best to protect yourself with long-term disability.
Employee disability insurance is an important benefit every company should consider offering to reach the status of a top employer. There are two types of disability insurance: short-term and long-term. Which coverage is right for your company depends on your needs and budget. However, any form of disability coverage is better than no coverage at all. At Employee Retention Benefits, we offer competitively priced short-term and long-term disability insurance plans to companies in the Los Angeles area. We have decades of experience providing competitive pricing on all our plans to employers in the area. We’ll also leverage our network of over 129 carriers to ensure you get quality short and long-term disability coverage for your employees. Contact us today to learn more about our plans and get a free quote!
