First things first, let’s discuss the purpose of disability insurance.
As we approach the end of a terrifying year, it’s understandable if you are feeling burned out. In these perilous times, your business is probably experiencing more turbulence than ever before. As such, you can expect high levels of employee turnover. Overworked employees who are also undergoing extreme stress outside of work are not going to be performing at their full potential. That’s why both short-term and long-term disability plans hold an intangible value that you might not be able to see on paper.
The Purpose of Disability Insurance
First things first, let’s discuss the purpose of disability insurance. You might also hear it referred to as “disability income insurance” as it is meant to supplement your income while you are temporarily unable to work. That status could be due to injury or illness, both physical and mental. The money that the insurance plan pays out goes directly to you; this means you’ll be able to cover your expenses as needed and without restrictions on how you spend that cash. The primary differences between the two types of coverage are how long they last and how protective they are.
The Main Differences Between Benefit Periods
Now let’s move on to the main differences between the two distinct benefit periods. In case you’re curious what this means, the biggest difference is in the length of time you can collect benefits while you’re unable to work for the time being. Short-term benefits typically last for 3-6 months; meanwhile, long-term benefits can last for years at a time – 5, 10, 20, or even until retirement!
The Main Differences Between Coverage Levels
The other factor you need to consider is the level of coverage that you can expect. For instance, short-term disability will protect up to 70% of your income. On the other hand, longer-term disability will vary – anywhere between 40-70%. Although this seems unfair, keep in mind that you’ll continue to receive some income throughout the span of the agreement. Calculate your ordinary expenses and account for potential medical bills. After that, find out how much of your salary goes towards necessities such as groceries, medicine, utilities, and rent.
A Customer Testimonial
We would now like to switch gears and tell you about another satisfied customer. Katherine Pahlas of the University of Maryland Medical Center needed help with an insurance claim. Fortunately for her, Will stepped in to help. “Will was so attentive, quick, and eager to explain everything, made the process as simple and convenient as possible, and generally provided a positive interaction and overall experience.” Well done, Will!
Get Your Voluntary and Supplemental 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 the needs of all your employees. With over 17 years of experience, The MWE Partnership is your one-stop-shop for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, then contact us today! Also, be sure to like our Facebook page and follow us on Twitter and LinkedIn for all the latest voluntary benefit news!