Group Disability Insurance
Lost productivity due to employees becoming disabled is an issue of great cost for employers. Economic, demographic and societal trends have led to an increasingly mobile, diverse and older workforce. In addition, increased stress in the workplace and the home are taking a toll on overall employee health, productivity and safety. The result is higher health care and disability costs that have a measurable impact on employers and the employee benefits packages that they offer.
What is group disability insurance?
Group disability insurance provides income protection for employees as well as cost-saving management strategies for employers. For employers, lost time on the job due to a disability can significantly impact workplace productivity and profitability. Disability insurance provides partial replacement of lost income for employees while also covering overtime and costs of hiring replacements.
Is group disability insurance really necessary?
Lost time and medical costs are on the rise, and the risk of disability is greater than most employers realize. Consider these statistics:
- Three in ten workers entering the workforce today will become disabled before retiring
- An illness or accident will keep one in five workers from working for at least a year sometime during his or her career
- Americans have a 50 percent chance of becoming disabled for 90 days or more between the ages of 35 and 65
- A disabling injury occurs every eight seconds at work.
The possibility of becoming disabled very real for working Americans, and so are the financial consequences and costs associated with employee absence. Unscheduled absences disrupt workflow and increase cost, while human resource pressures are impacting the ability to dedicate adequate time and attention to situations where working time is lost.