The Capital Group Team is your Group Disability Insurance expert. Disability insurance is a specialized form of health insurance which protects the insured in the case of loss of income. If you lose your ability to work, either from temporary or permanent disability, you can make a claim on this coverage.
There are those that consider disability insurance a ‘luxury’. Be assured, however, that those with this opinion have never faced the emotional stress and financial difficulties caused by a loss of income due to an unexpected disability.
How would you or any of your employees cope financially under such unexpected circumstances? Disability insurance is the insurance that guarantees an income if you are unable to work due to a disabling injury.
There are two forms of Disability Insurance:
Short Term Disability Insurance (also known as weekly income, WI, STD)
Short Term Disability is a type of insurance that pays a percentage of an employee’s salary for a specified amount of time, if they are ill or injured, and cannot perform the duties of their job.
Typically employees are required to use sick days before short term disability kicks in, if it’s an illness that keeps them out of work for an extended period of time. This is why there is usually a different policy for short term disability for sickness versus an injury. Coverage is generally provided upon the first day of an accident, or upon the eighth day of an illness for a period of 13 or 26, or 52 weeks. Usually benefits are for 66 2/3% of salary, but different benefit percentages are available with different companies and in different situations. Definitions of disability vary with different insurance companies.
Long-Term Disability Insurance (LTD)
Coverage is provided for longer periods of time than with Short Term Disability, typically two years, five years, to age 65 or for life. Elimination periods (also called waiting periods) are longer generally than with STD. This is the time one must wait once disabled before benefits begin. Disability definitions are critical in evaluating these plans.
The Capital Group has the team of Group Disability Insurance professionals that can help you determine the type and amount of Disability Insurance that is best for you and your employees.