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Provide your employees with income in the event of a non-work related disability.
Short term disability insurance policies are taken out by an employer and offered to
employees to provide them with income in the event of a non-work related disability.
Work-related
injuries are covered under the employer's legally-required Worker's Compensation
insurance. Maternity is covered under
most plans as a short-term disability. Elimination periods and benefit durations vary by plan design.
Cost
Monthly premium rates for short-term disability insurance are
quoted per $10 of weekly benefit. For example, 10
covered employees each making $1,000 per week would result in
a potential weekly benefit of $6,000 (assuming a 60% benefit
level). A rate of $0.15 per $10 of weekly benefit would
yield a monthly premium of $90 ($6,000 divided by 10 times
$0.15).
Employer Premium Contribution
Most employers cover 100% of premiums for group short-term
disability plans. Voluntary (employee paid) disability
insurance is available for groups with five or more employees.
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