This story appears in the
September 2004 issue of
Entrepreneur.
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The average American worker has a 1 in 3 chance of becoming
disabled for 90 days or more during his or her working years. So it
makes sense to include disability insurance in your benefits
package.
"With the majority of Americans living paycheck to
paycheck, three months or more without pay may mean missing
mortgage payments or struggling to keep food on the table,"
says Richard Mucci, executive vice president of Simsbury,
Connecticut-based Hartford Life Insurance. "The most important
asset people have is the ability to earn an income. It's an
important asset to protect."
Offering disability as a benefit-even if the employee pays
part or all of the premium, as is typical at many
companies-will help you attract and retain good workers,
Mucci says. Also, most disability policies include a return-to-work
component, which means that, in addition to protecting the
employee's income, the insurer also helps the employee get back
to work. That assistance could include vocational training for the
worker or aid for the employer in making accommodations to allow
the worker to return to his original position.
Group disability is surprisingly affordable. "Generally,
for as little as $180 per year, somebody could protect 60 percent
of their income," says Mucci. Plans that cover a higher
percentage naturally cost more. But whatever you choose, Mucci
says, "It's better to have some type of program than no
program."
Jacquelyn Lynn is a freelance business writer in Orlando,
Florida.