Disability insurance is an insurance plan that provides income to an employee if they are no longer able to work due to a disability. Disability, in this context, refers to an injury or illness that prevents an employee from working for a significant amount of time. Its purpose is to cover the loss of income for a certain period due to disability.
Generally, most employees can take out personal disability insurance by themselves. However, businesses can also pay for a disability insurance plan as a component of their employee benefits package. If you do this as an employer, you will find that this is a great way to attract staff, make them feel valued, and keep them motivated.
Disability insurance issues a pay-out to an employee of your business who cannot work due to injury or illness. Often, this pay-out is up to 60 percent of an employee’s salary and is usually paid as tax-free income.
At Hignojos Insurance Agency, we’ll help you organize a disability insurance plan that suits your needs. You can offer short-term coverage for no more than six months, or you can provide long-term coverage that lasts for years.
When you offer disability insurance to your employees, they can allow themselves to fully recover before returning to work. This is because they have peace of mind and are not bothered about significant income loss during their period of incapacitation.
Want to know more? Reach out to us today.