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Income Protection – Are Your Employees Prepared?

According to the Social Security Administration, more than 25% of individuals ages 20 and older will be temporarily or permanently disabled before reaching retirement age.  People are generally advised to have a minimum of 6 months of salary saved up in case of debilitating illness or injury causing the individual to be unable to work.  The reality is that most people are not financially capable of this and are living paycheck to paycheck.  How will they pay their bills or provide for their families if they are unable to work?

Many employers are generous enough to give their employees company-paid short term and long term disability coverage that provide a source of income in the event an employee is unable to work, but not all businesses have the budget to cover the cost of these plans.  And with healthcare premiums on the rise year after year, businesses and their employees are more focused on containing those costs rather than focusing on disability benefits that are much less often used.  This has resulted in many businesses opting not to offer disability coverage altogether, thus leaving their employees entirely on their own to figure out how to make ends meet should a disability occur.

We recommend that budget-constrained employers offer short term and long term disability coverage to employees on a voluntary basis.  This means that employees who wish to participate pay the full premium for the coverage.  It shows individuals that their employers want to provide them with a comprehensive benefit package and the ability to protect their income without it having to affect the employer’s bottom line.

Voluntary benefits can be implemented at any time during the year.  Contact me for further information on how these programs could benefit you and your employees.

Information about the Author: Katie has been in the Employee Benefits industry since 2000. Prior to joining Insurance Associates, Katie was with a third party administrator where she served as an Account Manager and Supervisor of the Group Administration Department. At Insurance Associates Katie works closely with clients, insurance carriers, and vendors to ensure that all employee benefit needs are met and are done so in the most efficient and cost-effective manner. In her spare time Katie enjoys playing with her two children.

Katie Ball
Select Account Manager

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