What is disability insurance?
Workers often have protections including life, health or property insurance. They also can enjoy workers' compensation coverage or other benefits, such as retirement packages. But none of these options address the loss of income that occurs when a person isn't able to work for a few weeks or months for temporary, non-work-related reasons. Disability insurance can prevent workers from experiencing unnecessary financial difficulty during these times. It can protect employees' quality of living and reduce the odds that they experience stress due to a lack of adequate income.
What are the benefits of disability insurance?
From the employer's standpoint, disability insurance can serve as a perk that helps with employee attraction and retention—individuals can get policies on their own outside of an employer, but doing so is more difficult and more expensive, so employees like having it as part of a benefits package. Disability insurance providers also help businesses monitor and rehabilitate workers to ensure they recover well, allowing business leaders to make better decisions about teams, projects and general productivity goals. Disability plans can therefore support the management of profit and loss.