Planning Ahead for the Unexpected: A Testimonial on Disability Insurance

Actuary tables are not a good summer beach read, but they can reveal risks that we need to plan for. For example, disability prior to retirement age is more likely than death,¹ yet few employees understand disability insurance and how it protects income and cushions the effects of life-changing events.

May is National Disability Insurance Awareness Month, but Taylor Oswald works year-round to make sure organizations and their employees understand this critical benefit.

“I love making sure people understand disability insurance” says Tara Zick at Taylor Oswald, “because none of us plan to get sick. None of us plan to have an injury. We all think we are going to go to work each day and provide for our families, but sometimes we don’t get that choice.”

Tara shares a personal experience with disability insurance, and a compelling reason to NOT opt out of employer-provided disability insurance, in video below.

Educate your employees and their families on how disability insurance protects their income. It may increase loyalty to your company as employees better appreciate this critical benefit and how it safeguards their financial future.

The discussion should include:

The definition of “disability”
The differences among short-term disability and long-term disability
How much of the premium is paid by the company, and if there is a Waiver of Premium rider
If employees may purchase additional amounts at the company’s rate, which are typically lower than voluntary coverage on the open market
How long-term disability insurance is easily confused with long term care insurance. Disability insurance primarily replaces lost income when someone is unable to work due to a disability, while long-term care insurance covers the costs of care needed for chronic illness or disability, such as nursing home care or home health services.
How employer-provided disability insurance coverage ends when employment ends, but the employee should always consider holding a disability insurance policy.

If you’d like us to show you how short-term disability and long-term disability can be a marketable and positive part of your benefits package, contact Tara.

You may be surprised at its affordability – recently a group of 20 was insured for approximately $900 a year.

DISABILITY AND DEATH PROBABILITY TABLES FOR INSURED WORKERS WHO ATTAIN AGE 20 IN 2024 www.ssa.gov/oact/NOTES/ran6/an2024-6.pdf