4 Factors To Consider When Choosing The Best Short Term Disability Insurance Plan For A Small Business

 

It would be nice if life were predictable. Sadly, it's not. You can plan and dream, but everyday situations carry the potential for life-altering consequences. A single accident could leave you and your family without income. Even for a short period, this could mean significant financial challenges for most Americans.

Short term disability insurance can provide a layer of protection – it offers peace of mind in the face of life's unpredictability. Simply put, short term disability insurance, or STD, replaces a portion of your income while you recover from an accident or injury that has left you temporarily unable to work.

If you are a business owner, a short-term disability plan can help cover the financial expenses of employees when they are not able to work for a few weeks or months because of injury or sickness. They can benefit from this plan even if they are sick, get involved in an accident or go for a surgery. In this article, we are going to focus on how you can get the best short-term disability insurance quote. Read on.

1. Consider the insurance provider

First of all, before you decide on an insurance plan and get a short-term disability insurance quote, find out who is going to pay for the coverage. In most cases, a big employer provider covers all of the premium costs. But in some cases, some small companies shift the cost to the employees via payroll deductions. If the coverage is funded by the employees, it will be considered an optional benefit from them. Usually, it’s termed as “voluntary short-term disability”

2. Find out when the Coverage Begins

The business owner will decide when the coverage will begin. Plus, it can have an impact on the cost of premiums. For instance, if the coverage starts on the first day of sickness or injury, the cost of premiums will go up due to the coverage period and higher risk.

Typically, the coverage starts on the 8th or 10th of the injury or sickness. And this waiting period is known as the elimination period. It gives plenty of time to the employee to get ready until the coverage kicks in. So, you should keep this point in mind when looking for the best short-term disability insurance quote.

3. Find out about the coverage duration

Duration of coverage is another important factor to consider when getting the best short-term disability insurance quote. This factor may also impact the cost of premiums. In most cases, the coverage period is four months or 12 weeks at most.

Some companies may choose to extend this period to 180 days, not more than that. On 181st day, long-term disability plans start off.

4. Consider the percentage of coverage

Lastly, it’s important that you consider the level of coverage as well. Most insurance plans don’t cover the entire amount of pay as insurance companies can’t afford such expenses. Most short-term disability insurance plans cover a part of the wages. For example, this coverage can be up to 70% of the employee’s monthly pay.

Some companies may cover a higher percentage, while others offer a lower percentage. So, keeping the level of coverage in mind is important if you are looking for the best short-term disability insurance quote.

In short, you can get the best short-term disability insurance quote from the best insurance provider if you follow the tips given in this article. Hope this helps.