Before you sign on the dotted line, be sure you’re covered
In July, Ladders published an article explaining why job seekers should “read the fine print before accepting an offer,” especially when hunting for a position post-pandemic. The article warns that while competition has become fiercer as unemployment numbers continue to climb, the search for decent insurance coverage should remain a high priority. The article particularly emphasizes the need for job seekers to gain a firm understanding of their short-term disability rights before accepting any job offers.
The price you could pay
G&A Partners’ Benefit Account Manager Tony Landry told Ladders that if a company can’t or won’t offer a competitive short-term disability insurance policy, then the job candidate should ensure she can purchase her own if she still wants the gig.
“Having short-term disability coverage through your employer—either company-paid or voluntary—usually allows you to get this coverage on a ‘guaranteed-issue’ basis,” he says. “This means that your personal health will likely not impact the ability to obtain coverage.”
Landry further explains that “short-term disability (STD) is an insurance product that provides a portion of your paycheck in the event an injury or illness prevents you from working. It’s a great way to protect your flow of income if you are temporarily unable to earn a paycheck due to unforeseen conditions such as a sickness or physical impairment.”
The fine print
STD benefits typically have a waiting period that ranges from 0 days to one month that you must fulfill as an employee before you are able to begin collecting benefits. The benefit period can vary from one month to 180 days, but 90 days is most common. The benefit amount is typically 60% of your income and is usually capped at higher income levels.
When purchasing various insurance products on an individual basis, oftentimes, the insurance company may want to inquire about your health condition. If it’s not up to their standards, they may not offer you coverage. Purchasing this type of product through your employer may help to mitigate that risk.
Employers: Build a comprehensive benefits package to attract, retain talent
Typically, for small to mid-sized business owners, the additional costs associated with providing dental, vision, disability, life, accident, and critical-illness insurance are too expensive to consider. Partnering with a Professional Employer Organization (PEO) such as G&A Partners, however, makes finding comprehensive insurance plans at competitive rates possible. Plus, companies get a team of HR, payroll and benefits experts for the average cost of one full-time employee out of the bargain.
* Important Legal Disclaimer – Nothing in this material is intended to be, nor should it be construed as, legal or financial advice. All data and opinions contained herein are for informational purposes only, may contain errors, and are subject to revision. You should consult with licensed professionals in their respective areas of expertise before making decisions about the topics covered herein. This material is not intended to reflect all circumstances, ranges, or possible outcomes. Your results and experiences will vary and will depend on your specific situation. No promises, assurances, offers, or guarantees are presented herein.
