Employee-Paid Disability Insurance
Common Employer
Voluntary Programs
For groups of 3 or more - ongoing participation not required
EMPLOYEE OR EMPLOYER PAID
Premiums can come from any source, in any combination. You can even change cost-sharing formulas over time without repricing existing policies.
LOW PARTICIPATION REQUIREMENTS
Only three (3) policies are required to start, and if participation later falls below this, existing policyholders won't be adversely affected.
CUSTOMIZABLE
Employees can custom-configure their own policies, including the Elimination Period, Benefit Period, Benefit Amount and Riders, subject to underwriting constraints.
NON-COMMITTAL
If the program needs to be cancelled or funding reduced, nobody gets hurt. Policyholders have the right to continue coverage on the same terms with no ongoing employer dependencies.
Streamlined Adminstration
No earnings reporting
IDI is issued as a fixed dollar monthly indemnity benefit. If you don't report earnings, the issue amount stays where it is.
employee self service
Employees can on-board themselves. Just give them the link.
payroll deduction not required
Payroll deduction is completely optional. Direct billing lightens the employer's load and still offers significant discounts - especially for women - potentially saving thousands.
non-erisa
It is possible - though not common - to have a non-ERISA program without any employer involvement, and still open up access to significant discounts.
Portability
Individual Disability Income (IDI) coverage is generally Guaranteed Renewable and often Non-Cancellable to age 65 or older - meaning the insurer cannot cancel or increase the premium until that time, provided the premium is paid - even if the employee leaves the business or the program is terminated.
Employee Cost Sharing
Once an individual policy has been issued, it doesn't matter who pays for it because unlike group coverage, the funding source in individual policies is not provisioned in the policy. Employees can pay 100% of the cost from the beginning, or it can shift to employees over time.
Low Participation Requirements
Only three (3) policies are required to start, and if participation falls below this threshold existing policyholders will not be adversely affected.
Own-Occupation Coverage
Own-occupation coverage for the full Benefit Period is fairly standard, meaning it should pay even if the insured individual can do something else. True Own-Occupation, which pays full benefits even if working in a different occupation at the same time, is also available.
Custom Configurations
Many worksite programs allow the employee to custom-configure their own policies, including the Elimination Period, Benefit Period, Benefit Amount and Riders, subject to underwriting constraints.
What About Pregnancy?
Pregnancy is treated the same as an illness in employer-sponsored environments. If employer sponsorship does not exist - for example if the intention is to avoid ERISA - then pregnancy complications are generally covered but normal pregnancy would not be treated as illness.
No Earnings Reporting
If you'd rather not constantly report earnings as they change, consider worksite individual policies that pay a fixed dollar monthly indemnity amounts. Like a ratchet, employees can still upgrade to keep pace with rising earnings, but they won't lose anything if earnings decline or there is a failure to report. Perfect for employees with volatile earnings.
No Payroll Deduction Hassles
If you want to avoid payroll deduction administration, some worksite programs offer the option of direct billing so your employees will be billed at home and still get the group discounts. Of course, if you prefer to offer payroll deduction as a service, that is always available too.
