Life and disability insurance help protect employees and their families from unexpected financial hardship.
Life and disability benefits provide income protection for employees and their families. Life insurance helps provide financial support to beneficiaries in the event of an employee’s death, while disability insurance helps replace a portion of income if an employee becomes unable to work due to illness or injury.
These benefits can be offered as employer-paid coverage, voluntary employee-paid options, or a combination of both. Employers may also structure benefits using different employee classifications to provide varying levels of coverage for executives, managers, or other key employees.
Offering life and disability coverage can be an important component of a comprehensive employee benefit program and can help provide peace of mind for employees and their families.
Life Insurance
Group life insurance provides financial protection to employees’ beneficiaries and is often a core component of an employer’s benefit package. Many organizations provide a base level of employer-paid life insurance, while also allowing employees to purchase additional voluntary coverage for themselves or their dependents at group rates. Life insurance programs can also be structured by employee class to support different levels of coverage across an organization.
Disability
Long-Term Disability
- Long-term disability insurance provides income replacement for employees who experience a prolonged illness or injury that prevents them from working. Because income is often a household’s most important financial resource, long-term disability coverage helps protect employees and their families from the financial impact of an extended absence from work.
Short-Term Disability
- Short-term disability insurance is often referred to as “paycheck protection.” These plans provide income replacement during temporary absences caused by non-work-related illness, injury, or pregnancy. Short-term disability coverage typically begins after a brief waiting period and can help employees manage the financial challenges associated with a medical leave of absence.