Short-Term and Long-Term Disability Insurance
Paying attention to the contractual details on a disability policy can make a huge difference. We’ll consult with you and help you answer the most pressing questions on disability insurance policies, such as:
- Disability definitions – 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?
Life insurance benefits plans are highly detail-oriented, and failing to understand each piece can put your plan at a significant disadvantage. We pay attention to the details that are often overlooked but make a big difference in your benefits, such as:
- 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?