And although workers are more likely to carry life than disability insurance, the reality is we're at greater risk of becoming disabled than dying during our working years. If you opt for employee-paid or splitting the cost, keep in mind that many insurers require that a certain percentage of employees participate in a group plan. So make sure your employees seem committed before moving forward. The policy should define someone as disabled if they're unable to perform their own occupation. Many policies won't consider someone totally disabled even if they can't perform their particular job if they still have skills that could be transferred to another job.
Insurers typically offer a variety of options, which naturally carry varying premium rates.
Be sure you understand what the policy doesn't cover. Instead of group coverage, you may want to offer employees the opportunity to purchase their own policies, which you can subsidize if you wish. Although underwriting standards are significantly tougher and the cost is much higher, the benefits of individual policies are greater. Inc. All rights reserved.