Insure for short-term disability

Why should you consider buying short-term disability insurance for yourself or your employees?

After a medical plan, short-term disability coverage is probably the most important benefit you can provide for yourself and your employees.

What happens if you or one of your employees becomes seriously disabled during prime working years? Studies show that many Americans live paycheck to paycheck, so there could be serious financial consequences if the wage earner becomes disabled and loses that paycheck.

Disability doesn’t just happen to the “other guy.” According to a study conducted by insurance actuaries, three of 10 employed people between the ages of 35 and 65 become disabled for three months or more during their working career.

On a personal note—my wife recently returned to work after six months, and she received short-term disability coverage from her employer. I can vouch for the importance of the checks that helped make up for her lost income.

What happens when you don’t offer short-term disability coverage? If one of your insured employees becomes disabled, you may feel obligated to “help out” that employee. You then face these sensitive issues:
• Determining whether the employee is disabled, how much to pay the employee during the disability, and for how long;
• Deciding whether to pay the disabled employee “out of pocket” or from the assets of your business.

When you sign up for a short-term disability plan, you pay a premium to the insurance company, and you are relieved from making these determinations and decisions.

Michigan Retailers Association improved its short-term disability plan last year, and the program now includes these important benefits and features:
• You choose the same weekly maximum benefit for you and your employees, $250, $500 or $750.
• The benefit replaces 60 percent of earnings, up to the maximum benefit selected.
• Benefits begin after the employee has been disabled for 30 days.
• Disabled employees receive up to 26 weeks of benefits. Social Security disability benefits begin after five full months of disability, and an employee with a serious disability may qualify for Social Security disability.
• Maternity benefits are included.
• Evidence of insurability is not required, but there is a pre-existing conditions exclusion.

Protecting the earning power of you and your employees is very important. To learn how inexpensive it is to offer MRA’s short-term disability plan, contact Linda Pollack (formerly Linda Cook) at 800.366.3699.