Quality employer offered benefits are among the most appreciated aspects when evaluating job satisfaction. Group Long-Term Disability Insurance is one of the most valued benefits next to health and retirement because employees understand the importance of having a pay check. Even though this type of policy is typically employer paid, it can be designed in a way to maximize the efficiency of the policy and yet keep costs down for the employer by doing a combination of employer/employee paid benefits.
DID YOU KNOW: You can create a Group LTD policy with as few as 2 employees.
Anytime an employer can offer unique benefits that the employees value, it will raise employment satisfaction and company loyalty. In particularly, compensating your executives for their hard work and loyalty can be difficult, especially when funds may be tight. Through an Executive Benefit "Carve-Out" plan, you can carve out those key employees that you wish to offer unique benefits to using disability insurance. The premiums for coverage are marginal and can be deducted by the company, but the benefits received if a disability occurs will pay them tenfold compared to if you paid them the premium amount in the form of cash bonuses.
One of the greatest challenges in obtaining individually owned insurance is qualifying based on health. One of the biggest deterrents to owning individual insurance is the lengthy process of going through medical underwriting and the risk of having specific conditions excluded from coverage. Nearly 1 in 10 individuals will not be eligible for coverage on their own. Another 3 in 10 will have some sort of exclusions because of a health condition. As an employer, you have the ability to offer individually owned disability insurance on a Guaranteed Issue basis, meaning NO medical history reviews or exams and NO exclusions. This could be employer or employee paid depending on the size of your company. The process to set this up is very easy and the enrollment process for employees is even easier.
Every employer relies on their key employees to be productive and drive revenue. What would happen if one of those key employees were to become disabled for an extended period of time? Key-Person disability insurance is a product designed to compensate the Employer when a disability happens to a key employee. It typically pays a lump-sum benefit and the cash can be used for whatever is necessary to offset the costs of losing your employee. Not only would the cost of replacing that person be expensive and time consuming, but the costs due to lost productivity and retraining could also affect the bottom line. And what about the costs associated with lost knowledge, skills, and relationships or the cost of PR to ease the minds of customers? After all is said and done the costs could be hundreds of thousands, so the loss of a key employee is a risk worth insuring.