Can You Use Disability Income Insurance if Your Injury or Illness Isn’t Total?

Can You Use Disability Income Insurance if Your Injury or Illness Isn’t Total?

October 4, 2022
By Alexandra Ginieres Disability Insurance, Facts, Inclusion Ignites Ideas, Living with Disability, Protect Your Income, Uncategorized

Alexandra Ginieres Head of Disability Marketing, Individual Markets Guardian Life Insurance Company of America® Editor’s Note: Experiencing a disability doesn’t have to be career ending. Being prepared for those “what if” moments is important. If you have the right coverage in place when an .. more »

Alexandra Ginieres

Head of Disability Marketing, Individual Markets

Guardian Life Insurance Company of America^®

Editor’s Note: Experiencing a disability doesn’t have to be career ending. Being prepared for those “what if” moments is important. If you have the right coverage in place when an injury or illness strikes, you can ensure your income is protected. A partial disability option allows you to return to the workplace part-time and receive a partial (or residual) disability insurance benefit even while you are recovering.

Know the facts

Protecting your income with disability insurance (DI) is a critical part of ensuring financial well-being for you and your family. It’s true that one in four of today’s 20-year-olds will experience a disability before they reach retirement.¹ But not all disabilities are alike. Many people assume that the most common cause of a disability is an accident, but in fact, most disabilities are caused by illnesses such as cancer, heart attack and diabetes.²

While a disability could leave you unable to work for a period of time, it may not prevent you from working entirely. Sometimes a disability can hinder your ability to perform the duties of your job, but you may still be able to work at some capacity. Whether you’re unable to perform all your duties or you can’t perform those duties for the same length of time, many injuries and illnesses can impact your income despite still working. This is known as partial disability.

Why do you need partial disability insurance?

Experiencing a disability doesn’t have to be career ending and being prepared for those “what if” moments is important. By having the right coverage in place when an injury or illness strikes, you can ensure that your livelihood is protected. With the right policy that supports options for partial disability, you can return to the workplace even while you are recovering.

When deciding on a partial disability benefit rider, it’s important that you choose one that not only fits your needs, but one that can also provide the best protection during all phases of a disability. Finding a robust DI policy with a strong partial disability rider can provide you with more benefits sooner, longer, and can help eliminate the risk of lost income.

Partial disability benefits to look for

Whether you are a professional or business owner who has a fee-for-service income or a salaried employee, finding a policy with strong partial benefits could mean the difference between focusing on your physical recovery or dealing with the burden of lost income. You want to look for a carrier who understands how important it is to get “back on your feet” after a disability. Consider a policy that includes strong partial features that will enhance your protection.

The definition of “partial disability” is different in each policy. When a disability income policy covers partial disability, the benefit is usually equal to a specified percentage of the total disability benefit for a limited time period. For example, 100% for 12 months.

- - - - One feature to look for when considering a partial disability rider is a lower loss of income trigger. A lower loss of income trigger could qualify you for benefits sooner if you’re unable to work as many hours or unable to perform all the same duties you did prior to your disability.
        
        Another important component to look for is that the benefits received are based on your loss of income due to the disabling condition with no requirement for reduced time or duties. This means that you may be eligible for benefits even if you never miss a day of work.
        
        Additionally, a rider that treats recovery time as a partial disability can also be helpful, as you can use that time to satisfy the benefit elimination period, which in turn will allow you to access your benefits sooner. That means your carrier will waive monthly policy payments while you’re disabled and receiving benefits.
        
        Also look for a carrier who may offer a Waiver of Premium Benefit, which means the company will waive premium for a period of time after recovery and benefits end.

Remember that the goal is to retain as much of your income as possible, and the right policy can help you do just that.

For Employers

When deciding which benefits to offer your employees, consider a DI policy that includes partial disability benefits. By offering this type of coverage you are encouraging your employees to be productive and return to work after experiencing a disability. Whether you offer a group policy or an individual policy, the partial disability rider features can support your employee and ensure their income is protected through all stages of their recovery.

Explore your options

When considering which policy may best suit your needs, find an experienced provider to help you choose the partial benefits will work best for you. Finding a provider that understands the need for income protection at every phase of a disability is key. Speak with a financial professional about your needs and find the protection that makes the most sense for you.

_{¹ U.S. Social Security Administration Fact Sheet, January 2022.}

_{² https://disabilitycanhappen.org/disability-statistic/}

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. This material contains the opinions of the author but not necessarily those of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA or provided by Guardian. BLICOA is a wholly owned stock subsidiary of and administrator for the Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state. Optional riders are available for an additional premium.

GUARDIAN® and the Guardian Logo® are registered trademarks of The Guardian Life Insurance Company of America.

2022-144003 (Exp. 09/24)

Ready for Open Enrollment? Three Steps To Getting In Shape for a Great Season

September 22, 2022
By The Council for Disability Awareness Disability Insurance, Employee Benefits, HR, Uncategorized, Workplace

For HR folks, the fall is sort of like their own version of the retail holiday season or the big football final…that’s because it’s open enrollment, the time when employees are able to make major changes to their benefits plans without penalties. And just like .. more »

And just like retailers start planning their holiday promotions early, so should the HR team begin planning how they will communicate both the existence of open enrollment and what it means to their team.

Here’s how to make the open enrollment period smooth for you and beneficial for your employees.

1. Finalize your options

Chances are good that you have already been working on determining what benefits you will be offering and the rate at which you will cover them. For example, maybe this is the year you add a wellness benefit or pet insurance. You also want to make sure you have a robust slate of health choices that might include dental, vision, and alternative medicine; as well as insurance, such as life and short-term and long-term disability.

With employment rates continuing to be high, benefits are just one additional way that you can strengthen your position in attracting and retaining employees.

2. Create your communications material

Even if you have the most admirable benefits plan in the world, it won’t help if your employees don’t know or understand what’s available to them—and one survey found that one-third of them do not!

From co-pays to premiums, the insurance world can be full of unfamiliar terms. Take health insurance—many employees can’t explain how a high-deductible plan might improve their financial situation. And many employees might never take the time to recognize what benefits are available to them. That’s why communication is vital during this time. Here are some pieces you should create:

A cheat sheet for common insurance terms: This would be an at-a-glance explanation of what all the terms mean, with examples of how they work in the real world. So, you could give a couple of explanations of how a high-deductible plan would play out for someone who uses little healthcare, compared to someone who has an ongoing health condition.

A summary of new insurance offerings: Finally offering massage therapy or financial wellness counseling? This is the time to tout the new benefits you’ll be offering to get employees excited about the package your workplace provides.

An explanation of existing offerings: During onboarding, most HR teams make a point to cover the benefit packages. But when employees are being bombarded with so much new information, they might not take the time to really dig in and find out what’s being offered and how they can take advantage of it. Open enrollment is the ideal time to refresh their memory on specifics. They might just end up with a renewed sense of satisfaction, just because you’re more thoroughly communicating what already exists.

A summary of total compensation (benefits + salary): Many employees don’t realize the value of their benefits package—estimated at 30% as most HR professionals know—but that disconnect means that they might feel underpaid if they don’t include these perks in their total compensation scenario. So depending on your bandwidth, it can be incredibly powerful to show exactly how much the company is kicking in, in terms of premium cost sharing, retirement program matches, disability insurance, and other programs you offer.

3. Use multiple communication vehicles

Gone are the days when HR could send out a big fat packet and hope/expect that everyone would read it. Today’s employees are used to getting their information in multiple ways. But the good news is that it doesn’t necessarily mean a ton more work for you; it just means thinking of creative ways to repackage the existing elements. The best way to make sure your communications vehicles hit their target market is through a strategy you can call COPE: Create once, publish everywhere. Some suggestions for broadcasting the materials you’ve created include:

Emails that drive them to your intranet, where materials reside online
A video campaign where you cover one type of benefit at a time and send the links to employees to watch at their leisure
A webinar where you present the information and they can send in real-time questions, with the option to replay later
A town hall style meeting where you can present and answer questions (done virtually if needed, depending on if you have a distributed workforce)
A drip campaign that supplements each of these by “teasing” what’s coming and meeting the need for “snackable” content that employees can consume quickly, then come back for more

As open enrollment season approaches, now is the time to prepare for your busy period. The great news is that it will wrap up just in time for you to enjoy the holidays.

Disability insurance

Disability insurance

Category: Uncategorized