The business purpose of Group Disability insurance is to offload impaired employees from the payroll without firing them. Otherwise, leadership may be financially compelled to make painful decisions during an employee's hour of need, possibly inviting litigation over wrongful termination.
For employees, group disability insurance protects a portion of basic earnings against interruption due to health risk. It is positioned as an employee benefit and usually requires no employee action to enroll.
Information Needed For Proposals
Part 1 of 2
Business Information
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Legal name of the group
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Legal form (LLC, S-Corp, etc)
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Date Established (if legal form has changed, use date of original legal form)
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Registered address (should match state records, and is not necessarily the same as the administrative address)
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Tax ID#
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SIC Code, if known
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Website address
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Target effective date (optional)
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Eligibility criteria. Who do you want to cover?
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Number of eligible members and number of total members
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Technology vendor, if integration is important (e.g., Ease, ADP, etc.)
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Current carrier, if any, and reason replacement is contemplated
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Is Supplemental Individual Disability Income currently in place?
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Priorities and known challenges. This is optional, and typically left for a discussion.
Part 2 of 2
Demographic Information
Pricing will require demographic information for each member, including:
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Class, if selective eligibility or tiered benefits are to be considered (optional)
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Ownership % of the business
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Date of Birth
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Gender
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State of Residence
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Work Zip Code
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Date of Hire
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Occupation
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Hours worked per week
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Hourly wage
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Base salary projected for this year (gross pay)
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Bonus paid in the prior year
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Commissions paid in the prior year
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RSU's paid in the prior year
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Ownership Distributions paid in the prior year
The type of pay is extremely important.
Compensation must be broken out by type (e.g., base, bonus, etc).
If you're with a small organization, you might compile this data with this starter spreadsheet which has the field names prepared.
If you're with a large organization, feel free to output from your database in any format that is convenient for you.
Names are left off for privacy reasons.
Submission instructions will come after a dialog is established.
Group Disability Insurance Companies
Group Disability insurance companies (offering both Short Term and Long Term) include MetLife, Principal, Standard, Hartford, Guardian, Mutual of Omaha, Prudential, Lincoln Financial, and Unum.
For individual coverage, refer to Individual Disability Income Insurance Companies.
Proposals generally include mutliple lines, including Short Term Disability, Long Term Disability, life, accident, critical illness, and dental. Lines are selected for adoption on an a-la-carte basis (i.e. unbundled).