Short-term disability insurance varies based on the state and provider.
When employees cannot work for a specific time due to an injury or serious illness unrelated to their job, it can harm them and their employers. The workers may experience financial hardships because of lost wages, while the employers suffer delays in productivity. A solution to this problem is providing short-term disability insurance to your employees. It’s a more affordable voluntary insurance offering that doesn’t overlap with long-term disability insurance.
How Does Short-Term Disability Insurance Work?
Short-term disability insurance replaces income benefits that provide a percentage of pre-disability earnings every week when employees are not working due to a disability claim. It usually covers off-the-job accidents and illnesses that workers’ compensation wouldn’t cover. Short-term disability insurance varies based on the state and provider, including:
- Traditional – employers pay the full premium for their employees
- Contributory –employers and their employees contribute to the benefit cost
- Voluntary – employees pay for the disability benefits
- Core buy-up – employees have the choice to buy more coverage
Reasons for Receiving Short-Term Disability
Short-term disability claims typically occur due to illnesses and injuries that are not the result of a work-related activity, such as:
- Maternity leave
- Recovery from surgery
- Car or other significant accident
- Medical procedure
- Short-term illness
Employees can start receiving short-term disability payments for accidents on day one. However, the usual start date for payments is the eighth day after a claim has been filed.
Advantages of Providing Short-Term Disability Benefits
To truly benefit from the rewards of short-term disability insurance, employers must compare the up-front costs with the long-term benefits. For example, if employees cannot afford to participate in the disability program, it might diminish rather than improve their morale. Employers who succeed in balancing cost versus benefits might be able to:
- Attract new talent
- Retain team members
- Enhance employee engagement
- Improve employee financial wellness
Next Steps for Your Short-Term Disability Insurance
With The MWE Partnership by your side, you can receive cost-effective disability options customized to meet your business needs. Call us today at 410-394-9617 to learn how your employees can prepare for the unexpected.
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on Twitter and LinkedIn for the latest voluntary benefit news!