Life, Disability, and Voluntary Work Site Coverage
Usually bundled together, Life and Disability coverage are also common in a comprehensive employee benefit package.
Group life insurance is normally term insurance, and often an employer paid benefit. Term insurance is coverage that provides protection for a specified number of years, with benefits payable only during the life of the policy. Term insurance has no cash savings value.
Group universal life is another type of coverage available to employers. This type of life insurance combines term insurance protection with cash savings value.
Group life insurance packages can be designed to allow an individual employee to purchase additional coverage as needed.
Disability coverage is broken into two distinct categories - short or long term disability - and provides protection from income loss due to illness or injury. Both short and long term disability benefits are payable when the insured is unable to work, and are based upon a predetermined percentage of the insured’s income.
Short term disability typically provides coverage for periods of short duration such as 13, 26 or 52 weeks. Elimination periods are also common with short term disability, rarely lasting longer than 15 or 30 days, and often coinciding with an employer’s “sick pay” benefit. Short term disability benefits are typically paid weekly, and range from 50% - 100% of the individual’s income, with 66% being average.
Long term disability typically provides coverage for longer periods of time, such as 2 years, 5 years, or to age 65. Longer elimination periods are common, either 30, 60, 90 or 180 days. Long term disability benefits are usually limited to 60% of the insured’s income.
VOLUNTARY WORKSITE BENEFITS
Today’s economy and competitive market place brings new challenges to employers. How do you attract, recruit, and retain quality employees while maintaining a profit margin that ensures continued success? Benefit packages play a crucial role in recruitment and retention, and represent one of the largest expenses an employer faces.
As health insurance premiums increase, employers are facing a difficult decision: absorb the increase, pass it on to employees, or change benefits. Many times coverage is reduced, and health plan deductibles are introduced or increased.
As a result, voluntary worksite benefits are increasing in popularity. Voluntary worksite benefits are selected and paid for by the employee, many times as part of a Cafeteria Plan so the premium cost is paid for with pre-taxed dollars.
Voluntary benefits allow your employees to select coverage based upon their individual needs. There are several different types of voluntary coverage including, but not limited to:
- Short Term Disability
- Specified Health Event
- Hospital Confinement Indemnity
- Hospital Intensive Care
- Life Insurance
- Long-Term Care
Capital Region Benefits has a long-standing relationship with North American Benefits Company (NABCO). Our experience and client customer satisfaction with NABCO has been exceptionally positive.
We are also licensed with:
Madison National Life Insurance Company, Inc
Mutual of Omaha