Employers can offer disability insurance as a perk to their employees. The employees will often buy into this plan in a group setting, so all of them are covered under the same general policy.
If they get injured, then they can get benefits for a short-term disability or a long-term disability. These can pay out at different percentages, such as a general range of 60 to 100% for short-term disabilities. As an employee, you can certainly see how valuable this would be to you.
But why do employers offer it? What is the benefit for them? Here’s what you should know:
The policies are cost-effective
The big reason why employers like to offer these policies is simply that they’re very affordable when you’re buying them for so many people and getting a group rate. The employer pays far less than if all of the employees bought individual plans.
Regardless, this just means that it’s an easy way for employers to maximize the financial value of the benefits package that they’re offering. It also gives employees a safety net so that they do not have to worry about not being able to make ends meet if something unexpected happens. Even those who aren’t being paid out at 100% will still have more stability.
What if they don’t pay?
All of this really goes to show how frustrating it can be when the insurance company denies a claim that you feel is justified. You were counting on that policy when you took the job, and now it feels like the policy isn’t there for you when you need it. If you think you’ve been wrongfully denied, be sure you know what options you have.