In the same way you rely on your employees to come to work day after day to help your business run, they rely on you to pay them to help their families function. But what happens when this symbiotic relationship between employer and employee is damaged due to disability - possibly for an extended amount of time?
Both parties can find themselves in financial trouble.
As a business owner, you are out a certain amount of productivity, and possibly revenue in the interim between your worker taking leave and returning to the office. Employees could also be short on cash if, as an employer, you are unable to pay them for their time out of the workforce.
Why You Need Disability Insurance
While an appealing alternative for income, the government is not a guaranteed source of financial relief. Sixty five percent of applicants for government benefits are turned down, and 90 percent of disabilities are not work-related and therefore do not qualify for coverage under workers’ compensation.
Despite these bleak-looking options, there is a solution that can benefit both you and your employees in times of need due to unexpected illness or injury: Disability insurance.
Adding an employee-paid voluntary disability plan to workers’ benefits portfolios positions you to offer your workforce valuable financial protection with no direct cost to your bottom line as an added bonus you improve your workforce’s quality of work and company loyalty. Workers agree that strong benefits packages increase their company loyalty, productivity and job satisfaction.
If you need further convincing, take note of these facts on disability:
- Insurance statistics show that only nine percent of long-term disabilities actually resulted from serious accidents. Injuries don’t have to be “serious†to put people out of work.
- The threat of a disabling accident is real: The Social Security Administration estimates that slightly more than 25 percent of today’s 20-year-olds will become disabled before reaching age 67.
- Just 31 percent of Americans are protected by disability insurance, and half of those believe they need more disability insurance coverage.
You might not be an HR or benefits expert, but you don’t have to be to understand that disability insurance helps protect employees’ most valuable asset: Their income and ability to earn a living.
Without steady paychecks, many would find it difficult - or even impossible - to pay the monthly mortgage or rent, car and credit card payments, utility and food bills, education costs, etc. It’s no surprise that half of all U.S. households examined would struggle to come up with $2,000 within a month.
Disability insurance is an offering that could help alleviate some of the financial stress when disabling accidents lead to tightened purse strings.
Protect Your Employees
By helping to protect your employees’ ability to earn a living, you also protect your own most valuable asset: Your workers’ ability to help your business run.
Disability insurance is a way to help your talent focus on getting well - rather than on how to pay the bills, which can lead to a quicker return to work. Simply put, adding disability insurance options to your benefits portfolio can help keep your relationship with your workforce running smoothly.
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