Five Reasons Employers Should Offer Long-Term Disability Insurance

At any given time, roughly 10 per cent of the workforce is on disability leave [source: CSPDM]. However, not all employers offer long-term disability insurance, which partially replaces income for employees with long-term disability status.

These are difficult times for employees. Mental health claims make up 30 per cent of disability claims and 45 per cent of total claims costs, according to SunLife.

Long-term disability is often bundled with short-term disability insurance, which provides financial support for up to six months. Typically, short-term and long-term disability policies provide 60 per cent to 70 per cent of an employee’s income; long-term disability commonly lasts for up to two years.

Consider these five reasons why this type of coverage is undoubtedly a key employee benefit that also emphasizes wellness in the workplace.

It Is an Incentive to Attract and Retain Talent

With base salaries relatively stagnant, strong benefits packages are the drivers of holding onto great employees and attracting new ones, and the cost of providing disability coverage is relatively low compared with other benefits.

It Helps Cope With Chronic Absenteeism

Employees with chronic absenteeism or presenteeism can hurt efficiency. Long-term disability benefits allow employees to get help and have financial peace of mind while focusing on their recovery, while employers can fill a position in their absence.

It Helps Employees Protect Their Savings

Long-term disability is a major benefit that promotes financial wellness and supports employees on disability, so they don’t need to go into debt, tap into savings or liquidate retirement accounts to pay the bills.

It Highlights Other Benefits

When offered as part of a comprehensive program to promote health and well-being, long-term disability insurance encourages employees to seek help. Some employees will use an employee assistance program (EAP) to support their mental well-being, while others can access preventive care services to support their physical needs.

It Increases Loyalty

Employees that are unable to work may face challenges that affect their financial, physical and mental health. long-term disability insurance helps support employees—even when they can’t help the employer—and engenders strong loyalty, which, in this market of job hopping and resignations, is priceless.

Did you know that CSAE offers Long-Term Disability insurance as part of the foundation of its exclusive employee benefits program? As valuable as basic life insurance, CSAE agrees long-term disability coverage is an essential employee benefit that protects its members during a time of great vulnerability. 

For additional information on plan options, or to receive a quote, please visit: https://www.hubinternational.com/en-CA/programs-associations/csae/

HUB experts are available to answer any questions you may have by emailing NAT.Businesssolutions@hubinternational.com.

¹ Canadian Society of Professionals in Disability Management, “Impact of Disability,” accessed January 21, 2022.
² SunLife, “Designed for Health, Disability Claims in Focus: Mental Health, COVID-19 and Beyond,” accessed January 21, 2022.