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What's The Damage?

Adding disability coverage to your benefits package
July 1, 2000

If you think disability insurance is something only corporations can afford to offer employees, think again. Granted, disability insurance isn't cheap. But before you say no simply because of the cost, take a few minutes to actually look behind the dollars.

Larry Schneider, a disability insurance specialist with the Disability Insurance Resource Center in Reston, Virginia, says offering disability coverage builds morale and loyalty-two critical issues in today's labor market. It also reduces companies' responsibility to continue paying disabled workers in situations where they might feel obligated to do so. And although workers are more likely to carry life than disability insurance, the reality is we're at greater risk of becoming disabled than dying during our working years.

You have three ways to handle the cost of disability coverage: company-paid, employee-paid or split between the two. If you opt for employee-paid or splitting the cost, keep in mind that many insurers require that a certain percentage of employees participate in a group plan. So make sure your employees seem committed before moving forward.

Schneider also advises considering these issues as you evaluate policies:

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