Social Media Preheader Home Page Get a Quote Refer A Friend Schedule an Appointment Claims Facebook Twitter LinkedIn Instagram Youtube
  • Home
  • Get A Quote
    • Annuities
    • AutomobileImage of right arrow
      • Auto Insurance Quote
      • Mexico Travel Insurance Quote
    • Bonds
    • Business & CommercialImage of right arrow
      • Builders Risk
      • Business Owners (BOP) Quote Form
      • Commercial Auto Insurance Quote
      • General Liability Quote Form
      • Liquor Liability Quote Form
      • Workers Compensation Quote
    • Dental
    • Farm
    • Flood
    • HealthImage of right arrow
      • Disability Insurance Quote
      • Health Insurance Quote
      • Long Term Care Insurance Quote
    • HomeownersImage of right arrow
      • Homeowner Flood Quote Form
      • Homeowners Insurance Quote
      • Manufactured Home Quote
    • LifeImage of right arrow
      • Life Insurance Quote
      • Term Life Insurance Quote
    • Motorcycle
    • Recreational Vehicle
    • Renters
    • Trucking
    • Vision
    • Watercraft & Boat
    • Windstrom
  • Customer Service
    • AutomobileImage of right arrow
      • Add Driver to Existing Auto Policy
      • Add Vehicle to Existing Auto Policy
      • Remove Driver from Existing Auto Policy
      • Remove Vehicle from Existing Auto Policy
      • Request Declaration and Coverages Page for Auto Policy
      • Request ID Card for Auto Policy
      • Send Declaration and Coverages Information to Lien Holder
    • Business & CommercialImage of right arrow
      • Add Driver to Existing Commercial Auto Policy
      • Add Vehicle to Existing Commercial Auto Policy
      • Remove Driver from Existing Commercial Auto Policy
      • Remove Vehicle from Existing Commercial Auto Policy
      • Request Declaration and Coverages Page for Commercial Auto Policy
      • Request General Liability Certificate of Insurance
      • Request ID Card for Commercial Auto Policy
    • Flood
    • Health
    • HomeownersImage of right arrow
      • Request Declaration and Coverages for Existing Homeowners Insurance Coverage
      • Request Evidence of Insurance
    • Life
    • MotorcycleImage of right arrow
      • Add Driver to Existing Motorcycle Policy
      • Add Motorcycle to Existing Policy
      • Remove Driver from Existing Motorcycle Policy
      • Remove Motorcycle from Existing Policy
      • Request Declaration and Coverages Page for Motorcycle Policy
      • Request ID Card for Motorcycle Policy
    • Other
    • Recreational VehicleImage of right arrow
      • Add Driver to Existing Recreational Vehicle Policy
      • Add Recreational Vehicle to Existing Policy
      • Remove Driver from Existing Recreational Vehicle Policy
      • Remove Recreational Vehicle from Existing Policy
      • Request Declaration and Coverages Page for Recreational Vehicle Policy
      • Request ID Card for Recreational Vehicle Policy
    • Renters
    • Watercraft & BoatImage of right arrow
      • Add Watercraft to Existing Policy
      • Request Declaration and Coverages Page for Watercraft Policy
      • Request ID Card for Watercraft Policy
    • Windstorm
  • Blog
  • Make A Payment
  • Resources
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Calculators
    • Free Reports
    • Insurance Glossary
    • News Center
  • About Us
    • About Parkway Insurance Group, Inc.
    • Location Map
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
    • Community Outreach
  • Contact
    • Contact Us
    • Join Our Newsletter
Postheader Auto Insurance Home Insurance Business Insurance Life & Health Insurance
Home > Blog > Disability Insurance: The Overlooked Employee Benefit
FRIDAY, AUGUST 5, 2016

Disability Insurance: The Overlooked Employee Benefit

Does your pay stub include the cryptic three-letter code LTD with a tiny dollar amount that’s deducted each pay period?  It stands for long-term disability insurance, and it pays to have it to provide for your family when you can’t work because of an injury or an illness like cancer. But many employees go without it. In fact, despite the fact that more employers are offering long-term disability insurance as an employee benefit, the number of employees insured is dropping.

That’s the troubling trend that the Council For Disability Awareness, a group representing 19 member insurance companies, found in its latest annual review of claims data for 2013. More than 213,000 employers offer long-term disability insurance through those companies, a slight increase for the second year in a row, after declines from 2009 to 2011. Yet the number of insured employees declined roughly 1.5% to 32.1 million last year (in 2009, 34 million employees had coverage).

There are a couple of reasons for the changing disability landscape, according to Barry Lundquist, president of the Council. One factor is that employers are focused on compliance with the new Affordable Care Act’s health insurance provisions—so employers and agents/brokers are saying they’ll deal with other benefits like disability insurance later.

Another factor is that when employers are adding disability insurance as a benefit today, it’s more likely that they add it as a voluntary benefit. That means the employee pays the full cost. Historically, the employer has paid the full cost, or at least for coverage up to a certain level. With employer-paid plans, employees are automatically enrolled. Sometimes you have the decision whether to make salary deferrals to increase your coverage. But with voluntary plans, enrollment hovers around 40%, Lundquist says.

Perhaps in part because of the improving economy, the number of individuals receiving long-term disability payments declined for the second year in a row, after four straight years of increases from 2008 through 2011. Yet total claim payments increased by 1.6% to $9.8 billion in 2013, the fourth year of increasing payments.

If you have disability insurance, you need to understand what you do have and determine if it’s enough. A typical benefit is 60% of your salary up to a $5,000 maximum monthly payout. Check if there’s an option to buy more coverage through your employer (the extra premiums really are cheap; I pay $75 a year). If you don’t have employer coverage or need more coverage than your employer plan offers, consider buying a personal policy on your own.

Here are some facts about disability insurance from the 2013 claims review to keep in mind while you’re reviewing your coverage.

Women take note. Women make up the majority of new claims. 56% of new long-term disability claims approved during 2013 by the member companies were for women; 44% were for men.

It’s for all ages. While claims by those age 50 and older, driven by claims by those age 60 and older, have been consistently increasing as a percentage of total claims over the past five years, younger workers face disabilities and benefit from long-term disability insurance. Four in ten new claims were made by those in their 40s or younger.

Injuries aren’t the leading cause of disability claims. Musculoskeletal system and connective tissue disorders like arthritis and sciatica are the leading cause of new disability claims, coming in at 29% of new claims. Cancer is second at 15% of new claims. Injuries and poisoning combined represent 10% of new claims.

Social Security disability only goes so far. Almost three-quarters of workers who get private disability insurance also get Social Security disability. Social Security disability payment amounts are very low—in the $700 a month range for younger workers. “That doesn’t go very far,” notes Lundquist. Also, it’s hard to qualify for and can take a year or longer to get approved for benefits.

Read More: Source

Posted 5:40 PM

Tags: disability, insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2017
  • 2016

  • insurance(68)
  • tips(29)
  • home(20)
  • auto(19)
  • safety(17)
  • life(16)
  • homeowner(11)
  • holiday(8)
  • car(7)
  • house(7)
  • homeowners(6)
  • flood(6)
  • rates(5)
  • family(4)
  • claims(4)
  • health(4)
  • business(3)
  • money(3)
  • long-term(3)
  • mistakes(3)
  • halloween(3)
  • new year(2)
  • disability(2)
  • commercial(2)
  • accident(2)
  • april(2)
  • thanksgiving(2)
  • claim(2)
  • save(2)
  • long-term care(2)
  • value(2)
  • dog(2)
  • funny(2)
  • women(1)
  • labor day(1)
  • permanent(1)
  • college(1)
  • financial(1)
  • retirement(1)
  • texas(1)
  • valentine(1)
  • traffic(1)
  • inventory(1)
  • refresher(1)
  • employee(1)
  • 4th of july(1)
  • school(1)
  • child(1)
  • teen(1)
  • student(1)

View Mobile Version
Fill out the form below or call/email us at
(281) 558-1991 | info@parkwayinsurancegroup.com


Who We Are >
We are a leading provider in insurance and services in the insurance industry. Priding ourselves on providing the best customer experience possible while also giving you the lowest rates. We have relationships with dozens of insurance companies, allowing you to get the right price with the right service.

Read More
Read Our Blog >
ASI Lloyd's
Progressive
Mercury
UPC Insurance
American General
Blue Cross Blue Shield
Universal American
Customer Testimonials >

Read More
 
  Who We Are
Insurance Carriers
Meet Our Staff
Customer Testimonials
  Auto Insurance
Life Insurance
Home Insurance
Health Insurance
Business Insurance
Other Insurance
  955 Dairy Ashford Rd. Ste 203 
Houston, Texas  77079
P: (281) 558-1991 | F: 281-558-1998
info@parkwayinsurancegroup.com
 
©Parkway Insurance, All Rights Reserved - Terms & Privacy Policy Powered by Insurance Website Builder