Skip to Main Content Back to Top
Home Employee Benefits Group Insurance Group Disability Insurance

Group Disability Insurance

Plan for the unexpected. Protect your employees’ peace of mind. Focus on what matters.

man-in-wheelchair-discussing-disability-insurance
Higginbotham H logo

Spotlight on: Group Disability Insurance

If your employees were suddenly injured or became ill and unable to work for an extended period, would they be able to cover their financial obligations?

If you answered no to this question, you’re not alone.

According to Money Under 30, only around 23 percent of Americans have enough emergency savings to cover six months of living expenses. Adding that an estimated 25 percent of people over 20 years old will become physically challenged at some point before retirement, the importance of carrying disability insurance cannot be overstated. 

With group disability insurance from Higginbotham, you get:

  • A local broker who takes the time to learn your business
  • Access to deep carrier relationships to help us accomplish things that others can’t
  • A flexible insurance partner who helps you through growth and contraction
  • A refreshingly transparent approach that keeps you and your people educated and updated

 

Why Higginbotham?

If you’re an employer looking to improve your employee benefit offering, we offer group disability insurance solutions that are more individual and less institutional. By making policies personal, we can tailor them to your specific needs and budget.

A company that leads with values, we work hard to understand your priorities so we can proactively advocate in your best interest, getting you competitive prices today, and delivering year-round value.

To learn more about how our values-based approach drives value for you and your business, click here.

Or visit our Insights page to learn more about short and long term disability.

woman-who-is-utilizing-her-HSA-account

Our team of employee benefits specialists are here to make your life easier.

Give us a call today to find out more about what Higginbotham can do for your business.

Request a QuoteLet’s Talk

Help Improve Retention and Recruiting with Group Benefits

Regardless of whether you opt to cover all or only part of the cost, buying into group benefits can lower out-of-pocket expenses for employees looking to carry disability coverage.

As an employer, the decision to invest in group disability insurance can pay dividends for your organization.

With countless studies finding a positive correlation between employee benefits and job satisfaction and performance and retention, it’s no wonder more and more organizations are adding disability coverage to their insurance portfolio.

Short-Term vs. Long-Term Disability

Disability insurance benefits are split into two categories:

Short-Term Disability

Short-term disability is designed to help employees who are unable to work due to childbirth, illness or injury.  

This coverage works by supplementing the disabled employees’ income with benefit payments. While these payments only cover a portion of the money an employee would make while working, they are usually enough to cover living expenses throughout the time an employee is out of work. 

Short-term disability benefits typically kick in somewhere between the 1st and 30th day after a qualifying event. These benefits are usually paid for a total duration ranging between 90 and 180 days.

In most cases, group disability benefit payments are determined by an employee’s base salary or W-2 earnings.

A typical plan follows the 14/14 model, in which benefits begin on the 14th day after a qualifying event. That said, there are a multitude of options to choose from when shopping for disability insurance.

If you need benefits beyond what is allowed in a group disability plan, some individual disability policies offer flexible solutions to explore. 

Long-Term Disability

In the unfortunate circumstance that covered employees suffer an injury or other event resulting in an extended disability, they should become eligible for long-term disability benefits. 

Fortunately for you and your employees, Higginbotham’s group disability plans typically include options for group long-term disability coverage (GLTD). 

In most cases, GLTD benefits are capped around 50-67 percent of an employee’s base salary up to the maximum monthly benefit defined in the policy documents. For employers interested in offering income protection beyond 67 percent, Higginbotham can help you explore options for increasing coverage limits up to 100 percent of an employee’s earnings or salary. 

Along with disability pay, some group plans offer coverage for vocational rehabilitation programs and job placement services to help employees get back to work after recovery. 

Most GLTD coverage has between a 90 and 100 day elimination period and pay benefits up to the employee’s social security normal retirement age (SSNRA), typically between ages 65 and 67. 

Do I really need DI coverage?

Anyone who relies on their monthly salary to maintain a comfortable standard of living for themselves or their family would be wise to consider carrying disability (DI) coverage.

Even if an employee is healthy and has a considerable asset portfolio or savings, unexpectedly losing the ability to work can be financially devastating.

While nobody likes to think about falling seriously ill or becoming permanently disabled, the possibility is too big to ignore. Conditions such as cancer, heart problems and stroke can come on without much warning and have a long-term impact on the ability to return to work.

Combining this with the high likelihood of big medical bills and other related expenses, the importance of protecting income with insurance can be critical.

man-reconsidering-getting-accident-insurance

How much does group disability insurance cost employers?

Though it’s difficult to quote an exact price without knowing the specifics of your operation, Higginbotham is committed to getting you the best coverage at the best price available.

If you’re looking for an insurance broker that can get you the right coverage for your employees at a cost that makes sense for your situation, we’re here to help.

Though some people assume disability income protection is a luxury they cannot afford, these policies can be tailored to specific needs and budgets with relative ease.

If you’re an individual whose employer doesn’t offer a group or voluntary plan, disability coverage for individuals is usually quite affordable.

The cost of a group plan depends on multiple factors, including:

  • Number of Employees
  • Geographic Location
  • Coverage Desired
  • Occupations of Employees
  • Employee Incomes
  • Age of Employees

Do social security payments effect disability benefits?

Though disability benefits can be reduced by Social Security payments and other supplemental disability income, this is not always the case.

In most situations, there are remedies available for employers and employees interested in maximizing benefit eligibility. Talk to a Higginbotham employee benefits specialist today to learn more about the options available to you.

businessman-happy-about-compliance
Higginbotham H logo

Not sure where to start? Talk to someone who wants to listen.

A great plan starts with a conversation. Let’s talk about what you need.

Talk to an Employee Benefits Specialist

Request a Quote