Group Short-term Disability Insurance (Washington)
Short-term disability insurance (STD) pays your employees a percentage of their salary if they are unable to work for a short period of time due to sickness or injury. This does not include on-the-job injuries, which are dealt with differently.
The Difference Between Short-term and Long-term Disability Insurance
The difference between the two is mostly about when coverage begins, and how long it lasts.
Short-term disability, as the name implies, is for a shorter period of time. Plans can start as early as the day of the injury and typically last 12-24 weeks. Long-term disability typically has a waiting period 90-120 days and can last until age 65.
Group Short-term Disability vs Individual Short-term Disability
Why should you offer your employees group disability coverage? How would it be better than an individual disability? One of the main differences is that individual insurance policies usually cost more. The benefits are often better, however, because each applicant is individually underwritten. The cost of group disability insurance is lower, but can change from year-to-year.
Group short-term disability insurance plans cover all eligible employees regardless of their health. Individual plans are better in one respect – once issued, the benefits and costs are not liable to change even if the person being covered changes their employment.
Why offer Short-term disability when WA state has Paid Family and Medical Leave (PFML) as of January 2020?
Higher wage employees
If you have employees making more than $87,000 a year the state’s plan would not replace 60% of their wages. Employers can offer Short-term disability in addition to WA state’s PFML so all employees make 60% of wages.
Maximum Annual Benefit Duration
PFML offers 12 Weeks of Medical Leave within a calendar year. It does not
consider if someone has multiple disabilities within a calendar year, they can only take
up to 12 weeks of leave. Offering employer STD would allow a separate benefit for each disability.
Group Short-term Disability Insurance for Small Business
If you own a small business and are looking for the right group disability insurance plan, McGregor Benefits can help. We have a team of expert insurance brokers who can take you through various available group short-term disability insurance plans for employers on the WAhealthplanfinder, helping you find the one that ticks all the right boxes.
The goal, when creating a benefits package for your employees, is to provide excellent health insurance that will protect your employees and attract more talent, while keeping your costs low. Our brokers understand, and will use their experience and skills to find you a comprehensive yet affordable plan.
Why Choose McGregor Benefits?
McGregor Benefits is a group short-term disability insurance agency that will help you find the right plan. We work with over 50 insurance carriers throughout Washington state, and have decades of cumulative market experience which we can use to get you a good plan at a low rate.
The best part about working with us is that our services are completely free of cost. You pay nothing for our services, and your insurance premium will be the same whether or not you choose to hire us.
We’re a proactive agency that holds employee meetings and makes sure your employees are aware of their benefits. The group short-term disability insurance agent you choose to work with will always be available for questions, so if you or your employees need any help, all you have to do is call.
If you’re satisfied with your current plan but would like to work with our company, just contact our office for a broker of record letter, which will enable us to offer our services to you.