Protect Your Team’s Income
Group short-term and long-term disability insurance that protects your employees’ income when they can’t work. A key benefit that attracts and retains top talent.
Get a Free QuoteIncome Protection for Your Most Valuable Asset — Your People
Group disability insurance provides income replacement for employees who are unable to work due to illness or injury. It’s one of the most valued benefits you can offer — giving your team peace of mind and financial stability when they need it most.
As an independent broker, we represent 20+ top-rated disability carriers and can design a group disability plan that fits your budget, your industry, and your workforce. Whether you want employer-paid coverage or a voluntary program employees fund through payroll deduction, we have the options and expertise to build the right solution.
Short-Term vs. Long-Term Disability
Most businesses offer both STD and LTD as a comprehensive income protection package. Here’s how they compare:
| Feature | Short-Term Disability (STD) | Long-Term Disability (LTD) |
|---|---|---|
| Elimination Period | 0 – 14 days | 90 – 180 days |
| Benefit Duration | Up to 26 weeks | 2 years – age 67 (or lifetime) |
| Income Replacement | 60% – 70% of weekly earnings | 50% – 66.67% of monthly earnings |
| Maximum Benefit | $1,000 – $2,500/week | $5,000 – $20,000/month |
| Typical Premium | 0.5% – 1.5% of payroll | 0.25% – 1% of payroll |
| Best For | Recovery from surgery, illness, childbirth | Serious injury, chronic illness, long-term care |
Voluntary vs. Employer-Paid Plans
Employer-Paid (Core) Plans: The employer pays 100% of the premium. This provides a baseline of coverage for all employees with no enrollment hurdles — everyone is automatically covered. Premiums are tax-deductible as a business expense, but benefits are taxable to employees. This structure is most common for key employee groups and executive benefit packages.
Voluntary (Employee-Paid) Plans: Employees elect coverage and pay the full premium through convenient payroll deduction. Since employees pay with after-tax dollars, their benefits are received tax-free. Voluntary plans give employees flexibility to choose the level of coverage that fits their personal situation, and they cost the employer nothing while still providing a highly valued benefit.
Hybrid Approach: Many employers choose a blended model — offering employer-paid STD or LTD as a base benefit while allowing employees to purchase supplemental coverage (or buy-up options) through voluntary payroll deduction. This provides a solid foundation of protection while letting employees customize their coverage.
Integration with Other Benefits
Group disability insurance works alongside your existing benefits package to create a complete safety net for your employees. Understanding how these coverages interact is key to avoiding gaps and ensuring seamless coordination:
- Paid Time Off (PTO) & Sick Leave: STD typically begins after PTO and sick leave are exhausted, or it can be designed to coordinate directly with your paid leave policy. Some plans allow employees to use sick leave to supplement STD benefits up to 100% of pay.
- Workers Compensation: If a disability is work-related, workers comp provides the primary coverage and STD/LTD serves as a supplement for any remaining income gap. WC does not cover non-occupational disabilities, which is why group disability is essential.
- State Disability Insurance (SDI): In states like California, New York, and New Jersey, state-mandated SDI programs provide partial wage replacement. Group disability plans can be integrated with or supplant SDI, depending on state regulations and employer preference.
- Social Security Disability Insurance (SSDI): LTD plans typically integrate with SSDI. Your LTD benefit may be reduced by the amount your employee receives from SSDI. We help structure plans to maximize total income protection.
- 401(k) & Retirement Plans: Employees receiving disability benefits may be able to continue retirement plan contributions. Many group disability plans include a retirement plan contribution feature that helps keep retirement savings on track during a disability.
Key Plan Design Considerations
Every business is different. When designing your group disability plan, we take the following factors into account to ensure the plan meets your needs and your budget:
- Waiting / Elimination Period: The longer the waiting period before benefits begin, the lower the premium. Common waiting periods are 0, 7, 14, 30, 60, 90, and 180 days.
- Benefit Percentage: Standard income replacement ranges from 50% to 70%. Higher percentages result in higher premiums but provide better protection for your employees.
- Maximum Monthly Benefit: Caps on the total monthly benefit help control costs while still providing meaningful protection. Higher caps are available for executive and key employee groups.
- Definition of Disability: “Own occupation” definitions are more favorable to employees (benefits if they can’t perform their specific job) while “any occupation” definitions are more restrictive and result in lower premiums.
- Guaranteed Standard Issue (GSI): Many group disability plans offer guaranteed issue up to certain amounts with no medical underwriting — meaning employees cannot be turned down for health reasons.
Frequently Asked Questions
Protect Your Employees’ Paycheck
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