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Short Term Disability Insurance 101



Aflac short‐term disability insurance offers income replacement benefits to help with the loss of income due to a covered illness or injury. No direct cost to employers

and affordable weekly rates as low as a movie ticket.

Short Term Disability Insurance

As workers strive to safeguard their finances, one area that garners little attention is disability insurance. Many Americans underestimate their personal vulnerability to experiencing a disability and overestimate the resources available to them in such a predicament. In fact, just over one in four of today’s 20-year-olds will become disabled before reaching age 67. And considering that 57 percent of working Americans say they only have enough money to pay for bills for six months or less, there’s a growing need for voluntary disability insurance.

What does short-term disability insurance cover?

Disability insurance can play a vital role in financial planning and safeguarding your employees’ financial future. It can help ensure employees maintain an income during a short-term disability, and can help with bills while they’re focusing on getting better.

In the event of a covered disability, a voluntary short-term disability insurance policy pays benefits (i.e., a monthly amount that is a percentage of a worker’s gross income) for a set period of time while the policyholder is disabled. Depending on an individual’s situation and short-term disability coverage policy, they may be able to receive benefits for up to 24 months.

Who needs short-term disability insurance?

Any working adult who is not currently covered by private or voluntary short-term disability insurance is a candidate for applying for such coverage. In fact, 67 percent of private-sector workers have no disability insurance and remain vulnerable to losing their income due to an illness or injury.

A decade ago, it was commonplace for a company-paid disability plan to pay an employee 70 percent of income if disabled, but those rates have diminished, and employees today often receive less than 40 percent. Furthermore, most people assume they will receive benefits from Social Security or workers’ compensation, but most often that’s not the case. While the average monthly benefit paid by Social Security Disability Insurance (SSDI) was $1,172 a month, more than 62% of initial (SSDI) claim applications were denied in 2016.

The need for disability insurance protection may be crucial, particularly for household breadwinners. Disabling injuries or illnesses can lead to significant medical bills, changes to the family’s home or transportation and more. Therefore, anyone who works — regardless of whether they are single, married, with children or without — should consider voluntary disability coverage.

As the health care industry continues to evolve and businesses strive to retain valuable employees while maintaining the bottom line, voluntary benefits will play an ever-increasing role in protecting workers in times of need. Isn’t it time to find out how voluntary benefits can help your organization?

For more information on how voluntary benefits can help your business succeed, call me at (318) 834-4395.

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Wimer and Associates LLC

318-834-4395

318-671-4434

2533 Bert Kouns Industrial Loop Ste 121, Shreveport, LA 71118

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