HR Pros Need To Educate Employees About Their Disability Protections
This Disability Insurance Awareness Month,get familiar with employer-provided disability plans and Social Security Disability Insurance
Posted on 05-24-2019, Read Time: Min
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When it comes to home, health, and auto insurance, most people don’t think twice about protecting their own earning power. This is also the exact role of disability insurance, and it still is frequently overlooked.
Typically offered through employers, disability insurance comes in the form of private short-term and long-term disability coverage. In addition, many U.S. workers don’t realize that most of them already pay a regular premium through their FICA payroll taxes for Social Security Disability Insurance (SSDI).
Further, few employees take the time to thoroughly review their annual benefits package—less than 30 minutes by some estimates—so it’s likely many don’t give a second thought to disability coverage. That’s what makes the month of May—Disability Insurance Awareness Month—so important, and why HR professionals shouldn’t hesitate to start arming employees with essential information.
The unfortunate reality is that disabilities happen more frequently than we like to think they do. According to the Social Security Administration (SSA), one in four of today’s 20-year-olds will experience a disability before reaching retirement age. The concern becomes more real when you consider this: About 25% of recent college graduates, pouring into the job market the next few months, are going to experience a work-disrupting disability.
Disability may come in the form of an injury, illness or disease. It can happen suddenly, such as a car accident, heart attack or aneurysm, or it may happen gradually, such as a neurological disease, heart condition or diabetes.
No matter how it manifests, a disability that prevents someone from working for months or years can be financially devastating. The Federal Reserve has found that should they face even just a $400 unexpected bill, one-third of middle-class Americans can’t afford it. That’s the entire point of insurance—to protect against costly surprises that you don’t see coming—and exactly why it’s critical for employees to know their options with disability insurance.
HR pros already know that some employers offer employees short-term disability(42% of private employers) or long-term disability (34% of private employers) insurance plans, which employees can elect to participate in during benefits enrollment.HR personnel working for these employers might think their job is simple: introduce the plan and coordinate enrollment.
Really, helping employees understand and make this decision can be a bit more complicated.
Since most plans are voluntary and cost the employee money, many workers do not enroll.(It’s important to note that prices vary because policies depend on a number of factors such as age, income, assets and debt, but long-term plans typically cost 1%-3% of a person’s annual salary.)
Employees often don’t consider the potential for disability as very realistic, and fail to see the incredible value of having reliable income should they have to stop working. Fortunately, HR professionals can play a role in reminding employees about the importance of their monthly income, plus, in the event of a disability, how vital this protection is for their household.
HR professionals can explain how disability insurance is designed to replace a portion of someone’s income rather than 100% of it. This education process also can include explaining how individuals who are able to medically recover can receive support with identifying, applying for and obtaining return-to-work opportunities.
One more educational opportunity has to do with SSDI, which becomes even more vital for employees working at companies that don’t provide disability insurance coverage. HR pros can play a role in sharing SSDI as an option for uncovered employees, what it is and how individuals can take full advantage of it. SSDI is a federal safety net that keeps individuals with disabilities afloat by ensuring they receive a source of income during their time of need, whether they use SSDI for one year, five years or longer.
SSDI can help former workers get back to work if and when their condition improves via its Ticket to Work (TTW) program, which utilizes Employment Networks (ENs) like Allsup Employment Services,to match SSDI beneficiaries with job opportunities for which they qualify.
However, accessing SSDI isn’t easy. The Social Security Administration oversees a stringent claims process, including multiple levels of appeals. This process can be confusing and time-consuming, sometimes lasting 2-3 years or longer due to the complex appeals process.
The longer someone has to wait to receive their SSDI benefits, the longer they’ll have to go without income and the more likely they’ll be to slip into serious debt, poverty or even foreclosure. This is why HR pros also need to understand how to connect uncovered employees to organizations that can help them.
In the hopes of preventing serious financial damage, HR pros can participate in an SSDI Extended Benefits program—at no cost—to help former workers get their application approved the first time around. An Extended Benefits program can also help employees understand and access related benefits like Medicare coverage and Ticket to Work.
No one is invincible, including younger workers who have a full career ahead of them. As they get started down their professional paths, HR professionals can play an important role in helping individuals think about disability insurance the same way they think about other forms of insurance.
HR pros can be very influential in encouraging a fresh mindset about disability insurance across U.S. workplaces, and also in making sure that employees receive the help they need when and if they experience one of the most difficult events of their life. Each person’s earning power is key to their present and their future, and disability insurance can both foster and help to restore that power.
Typically offered through employers, disability insurance comes in the form of private short-term and long-term disability coverage. In addition, many U.S. workers don’t realize that most of them already pay a regular premium through their FICA payroll taxes for Social Security Disability Insurance (SSDI).
Further, few employees take the time to thoroughly review their annual benefits package—less than 30 minutes by some estimates—so it’s likely many don’t give a second thought to disability coverage. That’s what makes the month of May—Disability Insurance Awareness Month—so important, and why HR professionals shouldn’t hesitate to start arming employees with essential information.
The unfortunate reality is that disabilities happen more frequently than we like to think they do. According to the Social Security Administration (SSA), one in four of today’s 20-year-olds will experience a disability before reaching retirement age. The concern becomes more real when you consider this: About 25% of recent college graduates, pouring into the job market the next few months, are going to experience a work-disrupting disability.
Disability may come in the form of an injury, illness or disease. It can happen suddenly, such as a car accident, heart attack or aneurysm, or it may happen gradually, such as a neurological disease, heart condition or diabetes.
No matter how it manifests, a disability that prevents someone from working for months or years can be financially devastating. The Federal Reserve has found that should they face even just a $400 unexpected bill, one-third of middle-class Americans can’t afford it. That’s the entire point of insurance—to protect against costly surprises that you don’t see coming—and exactly why it’s critical for employees to know their options with disability insurance.
HR pros already know that some employers offer employees short-term disability(42% of private employers) or long-term disability (34% of private employers) insurance plans, which employees can elect to participate in during benefits enrollment.HR personnel working for these employers might think their job is simple: introduce the plan and coordinate enrollment.
Really, helping employees understand and make this decision can be a bit more complicated.
Since most plans are voluntary and cost the employee money, many workers do not enroll.(It’s important to note that prices vary because policies depend on a number of factors such as age, income, assets and debt, but long-term plans typically cost 1%-3% of a person’s annual salary.)
Employees often don’t consider the potential for disability as very realistic, and fail to see the incredible value of having reliable income should they have to stop working. Fortunately, HR professionals can play a role in reminding employees about the importance of their monthly income, plus, in the event of a disability, how vital this protection is for their household.
HR professionals can explain how disability insurance is designed to replace a portion of someone’s income rather than 100% of it. This education process also can include explaining how individuals who are able to medically recover can receive support with identifying, applying for and obtaining return-to-work opportunities.
One more educational opportunity has to do with SSDI, which becomes even more vital for employees working at companies that don’t provide disability insurance coverage. HR pros can play a role in sharing SSDI as an option for uncovered employees, what it is and how individuals can take full advantage of it. SSDI is a federal safety net that keeps individuals with disabilities afloat by ensuring they receive a source of income during their time of need, whether they use SSDI for one year, five years or longer.
SSDI can help former workers get back to work if and when their condition improves via its Ticket to Work (TTW) program, which utilizes Employment Networks (ENs) like Allsup Employment Services,to match SSDI beneficiaries with job opportunities for which they qualify.
However, accessing SSDI isn’t easy. The Social Security Administration oversees a stringent claims process, including multiple levels of appeals. This process can be confusing and time-consuming, sometimes lasting 2-3 years or longer due to the complex appeals process.
The longer someone has to wait to receive their SSDI benefits, the longer they’ll have to go without income and the more likely they’ll be to slip into serious debt, poverty or even foreclosure. This is why HR pros also need to understand how to connect uncovered employees to organizations that can help them.
In the hopes of preventing serious financial damage, HR pros can participate in an SSDI Extended Benefits program—at no cost—to help former workers get their application approved the first time around. An Extended Benefits program can also help employees understand and access related benefits like Medicare coverage and Ticket to Work.
No one is invincible, including younger workers who have a full career ahead of them. As they get started down their professional paths, HR professionals can play an important role in helping individuals think about disability insurance the same way they think about other forms of insurance.
HR pros can be very influential in encouraging a fresh mindset about disability insurance across U.S. workplaces, and also in making sure that employees receive the help they need when and if they experience one of the most difficult events of their life. Each person’s earning power is key to their present and their future, and disability insurance can both foster and help to restore that power.
Author Bio
| Steve Perrigo is the Vice President of National Accounts and Consulting for Allsup. Connect Steve Perrigo Follow @Allsup |
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