DISABILITY
Income when an employee cannot work is not automatic
Most workers assume Social Security will cover them
For most disabilities, it legally cannot
Income replacement
Paid while you recover
Real peace of mind
What Disability Coverage Actually Is
Pays a cash benefit that replaces a portion of an employee's income
when they cannot work due to a covered injury or illness
Short-term and long-term options exist,
covering everything from a several-week recovery to an
extended absence
Why It Matters
Roughly 60 percent of workers have no employer-provided short-term disability coverage
Be different
Social Security does not pay any benefit at all for a
disability lasting less than 12 months
Just under 1 in 4 of today's 20-year-olds
will be out of work for at least a year
due to disability before retirement age
(SSA Publication No. 05-10029)
When Social Security does pay,
the average benefit is $1,582 a month, and
approval alone can take 11 to 12 months best case,
up to 2 to 3 years worst case (SSA)
Disability causes nearly half of all home foreclosures in the United States
Pros and Cons
Pros
Replaces lost wages for as long as the disability continues, not a one-time payment
Covers both short-term recoveries and long-term or permanent disabilities
Fills the exact gap Social Security legally cannot, disabilities under 12 months
Cons
Pays out over time, not as a lump sum, so it does not expand the budget to cover a large medical bill the way critical illness or hospital indemnity can
Benefit amount is a percentage of income, not full wage replacement
Employees must actively enroll and pay for it, coverage is not automatic
FAQ
Q: What does disability insurance cover?
A: Pays a cash benefit that replaces part of an employee's income when they
cannot work due to a covered injury or illness,
short-term or long-term
Q: Doesn't Social Security cover this?
A: Only for disabilities lasting 12 months or longer, and
only after a lengthy approval process.
Shorter disabilities receive no federal benefit at all
Q: How is this different from hospital indemnity or accident coverage?
A: Those pay a benefit tied to a hospital stay or a specific accident
Disability coverage replaces income for as long as an employee genuinely cannot work,
up to the term of the policy.
Q: Does this cost the employer anything?
A: No. Employees pay for this through payroll deduction.
Most see it simply as a benefit their employer made available
Q: Should disability coverage be paid pre-tax or post-tax?
A: Post-tax is strongly recommended.
Pre-tax disability premiums create employer FICA liability if a claim is ever paid.
Post-tax premiums avoid that liability entirely
Not sure if disability coverage fits your team?
Let's talk.
General Disclaimers/Disclosures to Satisfy the Attorneys/Legal Dept
I am a licensed Insurance Agent in any state I do business in
I am not an attorney, I do not give legal advice but I know some if you need one
I am not an accountant, I do not give tax advice but will direct you to talk to one and have some I can introduce
I am not a doctor, I do not give medical advice but I can help look up doctors in your network
I represent multiple carriers so I have more options for you
I mainly do virtual appointments, I live on top of a mountain in the middle of nowhere (about 45 minute to Crossville...you know, the BIG CITY ;)
And an hour north of Chattanooga TN
Some policies are guaranteed issue, some require underwriting
Your privacy is important to me, if you are referred to me by someone, I might tell them "Thank you for the referral" but will not use your name or discuss our conversation
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Updated 08/23/2026
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