Voluntary Benefits Coverage
Disability Insurance
Protect paychecks when illness or injury keeps an employee from working, with short-term and long-term plans.
Basic overview
Disability insurance replaces a portion of an employee's income if they cannot work due to a qualifying illness or injury. Short-term disability typically covers the first weeks or months of a disability, while long-term disability can continue for years when a condition is severe. It helps employees keep up with rent, car payments, groceries, and other essentials while they recover.
What this coverage typically includes
- Short-term disability for temporary conditions
- Long-term disability for extended illness or injury
- Partial income replacement based on salary
- Covered conditions such as surgeries, injuries, and serious illnesses
- Options for own-occupation definitions
Why it matters for your team
Most workers do not have enough savings to cover an extended loss of income. Disability insurance helps protect their paycheck and peace of mind.
Best for
- Employees who rely on steady income
- Businesses wanting to reduce financial stress during leave
- Workforces with physical or manual labor roles
Frequently asked questions
Common questions about disability insurance for Arkansas employers and employees.
What is the difference between short-term and long-term disability?
Short-term disability covers the first portion of a disability, often from a few weeks up to several months. Long-term disability begins after short-term benefits end and can continue for years depending on the plan.
How much of an employee's income is replaced?
Plans vary, but most replace a percentage of the employee's income, commonly around 60% of their pre-disability earnings, up to a plan maximum.
Does disability insurance cover work-related injuries?
It can, but workers' compensation usually handles job-related injuries. Disability insurance typically covers non-work illnesses and injuries, which represent the majority of disabilities.
Is there a waiting period before benefits start?
Yes. Short-term disability usually has a brief waiting period of a few days, while long-term disability may have a waiting period of several months before benefits begin.
Can employees keep disability coverage if they change jobs?
Some plans offer portability, allowing employees to continue their coverage after leaving the company. We can review portability options when designing the plan.
What conditions are typically covered?
Covered conditions commonly include surgeries, injuries, serious illnesses, pregnancy complications, and mental health conditions, depending on the plan terms.
Ready to learn more?
Dogwood Benefit Solutions works with employers across Central and Southern Arkansas to design voluntary benefits packages that fit your workforce and budget.