As a small business owner we are always looking to attract and retain quality employees. A Group Benefit Plan (Group Life, Disability, Dental etc…) is an inexpensive way for you and your employees to protect loved ones.
A benefits package usually includes:
Short Term Disability
Covering an employee for 3 or 6 months; the insurance provides weekly benefits ($500 to $750 per week is not uncommon) for employees who are totally or partially disabled by a covered injury, illness, pregnancy or mental disorder.
Longterm Disability
Picks up when STDI coverage expires, paying a percentage of your salary, usually 50 to 60 percent, depending on the policy. The benefits last until you can go back to work or for a specified number of years (5 year, 10 year, to age 65 etc…)
Group Life Insurance
In most cases, the cost of group coverage is far less than what the employees or members would pay for a similar amount of individual protection. So if you are offered group life insurance through your employer, you should usually take it, especially if you have no other life insurance or if your personal coverage is inadequate. (Some group benefits plans cover Vision, Dental and Legal Advice)
An employee might utilize their group benefits during a pregnancy, if they are involved in a car accident, or have a long-term illness.
An Example of how STDI might be used:
- Martha has a cesarean delivery and misses 6 weeks of work.
- Short-Term DI will pay a portion of her lost wages
- Martha earns $1,000 per week
- The plan pays 60% (up to $750 per week)
- Weekly benefit $600 per week
- Waiting period (before benefits are paid) 7 days
- Length of time benefits paid 5 weeks
- Total paid $3,000
Benefits could be 100% employer paid, 50% employer / 50% employee paid, or whatever percentage is best for your small business. Please contact Michael L. Segreve with questions or if you would like a quote (Msegreve@segrevehall.com)
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