Essential Disability Care Coverage for Businesses in Indianapolis and the surrounding areas.
Long-term disability policies take up where short-term policies leave off, covering employees who become disabled and unable to work for longer periods (generally six months or longer).
Long-term disability insurance typically provides 50 percent to 60 percent of pay to disabled employees, which continues to retirement age or for a specified number of months, depending on the employee’s age at the time of disability. In most plans, benefits are paid for the duration of the disability up to the age of 65. Benefits are usually computed as a percentage of the employee’s basic compensation prior to the disability. There is usually a maximum dollar amount per week or month.
Long-term disability insurance plans generally define “disability” in one of two ways: it can mean the inability to perform the tasks of one’s occupation or the tasks of any occupation at all. A plan may use both definitions of disability for separate periods. For example, for the first 24 months of a disability, disability may be defined as an inability to perform the employee’s regular job. However, after that, it may mean an inability to perform any job that the employee is qualified to do.
Any contributions that you make to a state program are deductible as taxes. Employees’ contributions are also deductible. However, if you opt for a private plan you may want to rethink that choice.
An employee does not have to be permanently disabled to receive benefits, but most plans require that the employee has to have been a regular, full-time employee for at least a year to be eligible. The employee may no longer be eligible for regular sick pay or short-term disability benefits.
Some disability plans may require that the Social Security Administration determine or affirm that the employee is indeed disabled before they will pay. The Social Security Administration uses an “any occupation” definition of disability and has a six-month waiting period, so this standard is difficult to meet. The amount received through Social Security payments may also reduce disability benefit payments.
Disability benefits are not just valuable perks—they’re a critical component of your company’s ability to attract and retain top talent. By offering comprehensive disability coverage, you’re not only protecting the health and well-being of your employees, but you’re also investing in the long-term success of your business.
Disability insurance provides coverage for hospital stays, including surgeries, intensive care, and rehabilitation.
Disability screenings, assessments, check-ups, specialist visits, and other outpatient services are typically covered.
Most disability plans include prescription drug coverage, helping employees manage the cost of their medications.
If an employer pays for an employee’s health or accident insurance plan, the employee must report any disability benefits as income. However, if an employee pays for the plan, they don’t need to report the benefits as income.
If an employee receives income from other insurance policies, retirement, or government programs, their disability benefit may be reduced.
The claim process for disability insurance involves filling out forms and submitting medical records. If a claim is approved, the employee will receive a letter with details about the amount and the frequency of payments. If a claim is denied, the employee has 180 days to appeal.
employee plan.
Generally, you should have enough coverage to replace at least 60% of your after-tax income. You can use a disability insurance calculator to help estimate how much you need.
Long-term disability covers serious injuries, diseases, or debilitating illnesses that prevent an employee from returning to work for months or years.
Employees may receive a portion of their premiums subsidized by their employer. However, employees may lose their coverage if they leave their job.
“Jackson Health Advisors has been a game-changer for our small business. Their personalized service and comprehensive coverage have made managing our company’s employee benefits a breeze. And, there’s been no more complaints about lack of coverage. They found us an affordable plan that includes a large network of reputable care providers.”
Sarah D., Indianapolis
“Thanks to Jackson Health Advisors, we found an affordable employee benefits package that fits our budget and meets our needs. Beth found gaps in our policies, and, she switched us to a plan that met everyone’s needs and saved us thousands. The way she explained benefits and answered our questions, made everything so easy and digestible. Highly recommend!”
Mike D., Indianapolis
We are passionate about providing employee benefits in Indianapolis and the surrounding areas. Our local focus allows us to better understand and address the specific needs of our community.