Should Your Company Offer Short and Long-Term Disability Coverage?


Ensure that your employees are covered in case of a disability with the help of a VANTREO broker.

If you are thinking of providing short- and / or long-term disability coverage to your employees or yourself, then VANTREO can help. We have worked with numerous business owners and companies over the years in completing their employee benefit packages - and having disability can be an ideal way to accomplish that goal.

Group disability insurance is one blanket policy that covers numerous people. If a covered individual within the group becomes injured or ill and is unable to work, then they may receive income from the policy, either on a short- or a long-term basis.

Need to Know More About Disability Benefits?

Disability coverage is oftentimes provided by an employer in addition to regular health

insurance benefits. Having short- and / or long-term disability coverage can help to ensure that an employee will have incoming cash flow, even if they are unable to work for a certain period of time.

Under the terms of a disability insurance policy, an enrollee will generally be required to wait for a certain amount of time after he or she becomes disabled before they can receive the income benefits. in some cases, a disability policy may even have two different waiting periods

  • one for accidents
  • one for illness


What is covered by short- and long-term disability insurance?

While both short- and long-term disability coverage will provide benefits if a person is unable to work due to illness or injury, these two types of protection actually have differing purposes. Short-term disability coverage will generally pay up to two years of benefits, while long-term disability insurance may pay up to the covered individual's age 65 - or possibly even for life.

A short-term disability plan will generally have shorter waiting periods. These will often be anywhere from 1 to 14 days. Long-term disability plans may require an enrollee to wait for a longer period of time - such as six months, or even a year - before starting to pay out its benefits.

Typically, the benefits that are paid out from an employer-sponsored disability plan will not be taxable to the employee - provided that the premiums are paid using after-tax dollars. Conversely, if the premiums for a disability insurance plan are paid with before-tax funds, then the benefits will be taxable to the recipient as ordinary income

Who is eligible for short- and long-term disability?

In order to be eligible for group disability coverage, a person must be an employee or a member of the covered group. However, not all members of a group will automatically be eligible for this type of coverage.

For example, although a group short- or long-term disability plan is not able to ban a particular individual from this coverage, it can prevent a group or class of individuals from being covered, at least until certain eligibility criteria, such as length of employment, have been met.

Why Choose VANTREO as Your Short- and Long-Term Disability Advisor?

By working with VANTREO, you can be assured of obtaining a disability insurance plan that best fits the needs of your company. Working with VANTREO is also easy and convenient. We work in conjunction with many of the best disability carriers in the market place, so we can point you towards the one that serves you best and that works for your premium budget.

For more details on how to move forward please contact us now at (800) 967-6543 or complete our contact form to request a complimentary consultation.

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