The Hidden Gap in Your Employee Benefits Package

When I first got my life insurance license, I was surprised by the number of people who didn’t have disability

insurance. Yet today, I understand why it happens. Most of us are happy to receive a paycheque, and most of

us are even happier when our employer offers us a group insurance policy. The reason is simple: in most

people’s mind, a group benefit insurance policy is the gold standard in the employee-employer relationship. 

Yet, there is something that most people don’t fully appreciate: disability insurance coverage does not come

standard in that arrangement. It came as a surprise when I started evaluating  group benefit packages.

However, over the years, it has become one of the things that I look for.

The reason for this discrepancy, this incongruity, is simple: group insurance packages are not all the

same. Or put differently, there is no standard group benefit package. Rather, each package is a creationof a broker, an employer (or plan sponsor) and the group insurance carrier. Accordingly, group plans

often only include health, dental, and/or life insurance; leaving disability protection out entirely. 

Now it is easy to understand why this is not clear to employees. When an employer hands over a benefits

booklet detailing coverage for prescription drugs, massage therapy, dental cleanings, and basic life insurance,

it feels complete. It gives an employee a sense of security: a feeling that "I'm covered if something happens." 

Additionally, in that booklet, there is a lot of industry “gobbledygook” and acronyms. In fact, if you don’t

understand what “NEM”s are, how to calculate the benefit that one should get from a disability policy, or the

costs that come with a disability, it is difficult to understand the benefit package that was given to you. Thus,

if you are one of those few people who have combed through your employee handbook or group benefit

policy, you might not realize that disability coverage is missing or substandard to your needs.

It takes specialized knowledge to realize that group benefit insurance policies are really the combination

of two different elements: Health and Dental Plans which cover expenses, and Disability Insurance which

covers income. However, most of us may not fully appreciate that those are two different things. However,

that rarely happens. So, it is important to know which plans will cover a $100 dental checkup and having

coverage for six months, the plans that will cover five years of lost paychecks and the plans that will do both.

After all, if a serious illness or injury keeps you out of work, free massage therapy and subsidized prescription

drugs won't pay your mortgage, cover your groceries, or fund your children's education. Your ability to earn

an income is the engine that powers every single part of your financial life. If that engine stops, everything else

comes to a halt.

My advice is simple: don't wait for a health crisis to find out what is actually in your policy. Open your benefits

portal or pull out your employee booklet today and look for two specific terms: Short-Term Disability (STD)

and Long-Term Disability (LTD). Take out a calculator and see what the benefit is. Compare it to your monthly

budget. If the two don’t match, you have a decision to make: take the risk or buy a personal disability insurance

policy. 

Now, if you don't see Short-Term or Long-Term Disability listed as active benefits, you likely don’t have any

income protection through your job. 

If you discover your workplace plan omits disability insurance, or if the coverage limits fall short of your actual

monthly expenses, you don't have to leave your financial future to chance. Please give me a call and I will help

you. 

In fact, if you want to avoid the calculator, you can also give me a call. I would be more than happy to review

your existing policy and provide you with a deep understanding of what you have and what you need.

An individual disability insurance policy can bridge the gap. Unlike group benefits, a private policy belongs to

you, moves with you if you change jobs, and provides guaranteed, tax-free income replacement tailored to your

exact lifestyle and career.

At the end of the day, a group health plan is great for day-to-day wellness, but income protection is what

preserves your financial stability. Take five minutes today to check your benefits booklet; because, knowing

where you stand is the first step toward keeping your future secure.