56 million Americans live with disabilities and 38 million live with severe disabilities. As we observe Disability Insurance Awareness Month this May, employers must recognize the significance of providing comprehensive disability coverage for their employees. Disability insurance safeguards individuals against the unforeseen financial burdens that may arise due to illness or injury, ensuring peace of mind and stability during difficult times.

Disability insurance serves as a crucial safety net, offering financial protection to employees who are unable to work due to a disability, whether short term or long term. It provides a source of income replacement, enabling individuals to pay their bills, meet financial obligations and maintain their standard of living during recovery. Conditions and illnesses that qualify for disability insurance include pregnancy, cancer, strokes and heart attacks.

Employers can offer various types of disability insurance, including short term disability (STD) and long term disability (LTD) coverage. Short term disability typically provides coverage for a shorter duration, ranging from a few weeks to a few months. Long term disability coverage offers coverage for an extended period, sometimes until retirement age. A third option, supplemental individual disability insurance, is sometimes offered to higher earners or employees who typically rely on commission.

1. Support for Employees: No one likes to assume or prepare for the worst. When the unexpected happens, disability insurance is there to provide reassurance and financial protection. It’s essential for employers to provide this coverage to secure peace of mind for their employees. On average, typical long term disability leaves are almost 3 years long.
2. Mitigating Financial Risk: Disability can strike anyone at any time, regardless of age or occupation. The loss of one income can mean financial tragedy to a family, possibly causing them to uproot their lives or switch careers. Only roughly half (48%) of Americans would be able to maintain their finances for two months if they had to miss work due to a medical condition, injury or illness. Disability insurance ensures employees can recover stress free and return to their job when recovered.

Through our insurance carrier partner program, PlanSource Boost, 17 carriers offer disability insurance. This ensures an optimized consumer experience for employees and time savings for HR teams.

As an employer, you can offer employees disability insurance, but how can you encourage employees to enroll? Employers play a crucial role in educating their employees on this valuable benefit. Educating employees about the benefits of disability insurance, providing clear information about coverage options and facilitating the enrollment process can help ensure maximum participation and uptake among staff.

As employees navigate life’s complexities, prioritizing their financial security is paramount. Disability insurance serves as an important piece of a comprehensive benefits package, offering crucial protection against life’s uncertainties. This Disability Insurance Awareness Month, look at your benefits package and ensure your employees know the benefits of enrolling in a disability insurance plan.