In today’s world group health insurance is a must.
With the constantly increasing prices of healthcare in our country, the repeated occurrences of global virus strains and the ever-rising instances of diseases, health insurance today is a necessity.
Group health insurance provides the much needed financial backup at times of medical emergencies. Health risks and uncertainties are a part of life.
Although humans remain unable to plan their time to get sick, one can certainly be prepared for the financial aspect. One of the best ways to be financially prepared against uncertain health risks is by having group health insurance.
Therefore, Group Life and disability benefits are crucial for employers and employees alike.
Before we begin to discuss some of the benefit plans for Group life and disability insurance that exist today, let’s first explain why it is important to have a Group life and disability policy insurance plan active.
• Potential to hurt yourself or someone else injuring you.
• Any degree of a physical disability that may occur from any form of bodily injury, job related work-place safety accidents, birth defects, medical, acts of nature, disease, etc.
• Unexpected death
• Ability to leave your family with a financial legacy.
• Monies available for death expenses.
This is why generally speaking it is important to have a group life and disability policy for employees.
• We are not all independently wealthy with a large source of available financial wealth.
• No need to tap into your savings.
• A personal injury may have future repercussions to your health and recovery therefore disability insurance should cover the incurred medical expenses.
• With group life insurance you will not leave your family member survivors with high expenses leading to potential financial hardship.
• Group life insurance may provide cash benefits to employee family survivors.
Now that we have briefly introduced and pointed out some of the main group life and disability insurance reasons for opening and maintaining a group life and disability insurance policy, here are some examples for employer and employee life and disability insurance benefit plans:
Group Short-Term and Long-Term Disability Insurance
The following are some of the most pressing questions on disability insurance policies:
• Disability questions – How will your plan define a disability? What if an employee returns to work in a different occupation, but is no longer able to earn at their same level due to a disability?
• Residual income – Will residual income (e.g., commissions from a previous sale) impact eligibility for disability benefits?
• Part-time stipulations – If an employee can work part-time, how will that impact their disability benefits? Will their disability benefits be significantly or slightly reduced?
• Taxability – What is the value in grossing up the disability premiums and having a tax-free disability benefit?
• Tax services – How will you handle adding disability payments to W-2s and matching FICA contributions on disability payments? Will this be handled internally, or through the insurance company?
Group Life Insurance
The following are some of the most pressing questions on life insurance policies:
• Issue limits – What are the guaranteed issue limits in your plan?
• Age reductions – What is the age reductions schedule?
• Spousal coverage – When does spousal coverage expire? Does spousal coverage terminate when an employee reaches age 70?
• Employee adjustments – Are employees able to increase coverage each year without answering medical questions?
• Plan portability and conversion – Can a policy under your life insurance benefits plan be converted or migrated to an individual policy?
Abbot Benefits Group is well-versed in the group disability and life insurance markets, and can provide expert advisement on:
• Employer paid life and accidental death & dismemberment (AD&D) insurance
• Employee paid (voluntary) life / AD&D insurance
• Short term disability insurance
• Long term disability insurance
With more than 35 years in the insurance industry Abbot Benefits knows insurance inside and out. Visit Abbot Benefits Group online at https://www.abbotbenefits.com, or by telephone 281-374-7577 to select the best insurance for your small business.
Contact Abbot Benefits Today! 281-374-7577
Together we can create the right life insurance and disability plans for you and your employees.