It is likely that the first thing a new employee will focus on before accepting a position with a company is salary. If they accept the position, what’s the first thing their better half will ask when arriving home? What’s the salary? They ask this question for a very simple reason, salary is important. Which is why disability insurance is important, it protects the employees income.
For most people the ability to work is their most important financial resource… no work, no money. Arizona disability insurance replaces a portion of the income when the insured cannot work due to an injury or illness.
There are two types of disability insurance, and ideally employers will offer both Short Term Disability and Long Term Disability. Short Term Disability benefits typically last from a few weeks to a few months, with benefits beginning after a waiting period of about two weeks or less. Long Term Disability is for more serious illnesses and injuries, with benefits lasting 2-5 years on average. Structured correctly, an employer benefits package will have the Long Term Disability begin once the Short Term Disability ends.
Having both short and long term disability policies per full-time employee is inexpensive, around $220 a year per employee (11 cents an hour of payroll.) Even if these benefits are paid for by the employee, it is less expensive than the employee buying individual coverage on their own.
Did you know that most Short Term Disability policies allow six weeks for a routine pregnancy? In other words, by offering Short Term Disability insurance the employer is essentially offering paid maternity leave as well.