Disability Income Insurance

Disability Income Insurance protects an employee against the loss of a portion of income during a period of disability. Short-term disability can be offered on a fully insured or self-funded basis

With short-term disability income insurance, partial income replacement is provided when employees become disabled due to non-occupational accidental injuries or sicknesses and cannot perform the duties of their occupation.

Short-term disability income insurance is intended to replace a portion of lost income; therefore, short-term disability income plans normally limit payments to a level that will discourage extended absenteeism that may occur if the amount of disability income is equal to or very close to an employee’s normal take-home pay.

Benefit Payment Period

A benefit payment period for disability insurance begins after the benefit waiting period. The usual benefit payment periods are 13, 26, and 52 weeks. Twenty-six weeks is the most common benefit payment period.

Amount of Insurance

The amount of insurance (i.e., the weekly income benefit) for disability insurance can be a flat amount, such as $300 a week or the amount can be based on earnings.

When based on earnings, the amount of insurance generally provides a more equitable benefit distribution than a flat amount. For this reason, earnings-based disability insurance is more common than flat amounts.

Note: Benefit limitations will vary by carrier.

Request for Proposal (RFP) for Disability Insurance

To obtain a quote for short-term disability coverage, you will need to provide the following information:

• Name of client
• Nature of business (SIC number)
• Salaries
• Benefit level, if flat amount
• Eligibility information
• Census information

For information on disability coverage or other EGA products and services, contact us at marketing@ega-inc.com