Employee-Paid Disability Insurance

Voluntary Programs

For groups of 3 or more - ongoing participation not required



Premiums can come from any source, in any combination.  You can even change cost-sharing formulas over time without repricing existing policies.


Only three (3) policies are required to start, and if participation later falls below this, existing policyholders won't be adversely affected.


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. 

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Non-ERISA disability insurance

Non-ERISA disability insurance with discounted premiums is possible by forming a group of three (3) individuals with a common employer affiliation, which does not have to be maintained.  These arrangements can save thousands of dollars per year, especially for women, and provide legal advantages in the event of a claims dispute.  In theory, employers are allowed to administer payroll deduction, but in practice billing is more often direct to the individual.  There is no employer adoption process, employee communication, or administration involved.   Consult your legal advisor.