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Health insurance only covers medical bills; it doesn’t cover groceries, rent, and other expenses while an employee is unable to work. That’s where short-term disability insurance (STDI) comes in.

STDI provides an employee with some or all of their income if they become unable to work as a result of non-job-related injury or illness. (Workers’ compensation pays for medical care and lost wages for employees injured on the job.) STDI policies vary, but typically cover a percentage of the employee’s income for a period of 3-6 months. 

Businesses can customize their short-term disability insurance policy to be a stand-alone plan, complement an employer-paid short-term disability plan, or work with a long-term disability plan to help ensure continuity of coverage. 

A Group Plan Makes it Possible

The Michigan Beverage Collective pools beverage business owners in Michigan to provide lower rates on short-term disability plans from The Hartford. 

Group disability plans typically provide a totally disabled covered employee with a benefit of up to 60% of their pre-disability income to a specified maximum, such as $10,000 a month. It can help to cover personal expenses as well as provide business overhead protection.

Advantages of a group plan include:

  • Plan design flexibility. In many cases, employers can elect a plan design that fits their budget and works for their employees. For example, an employer may choose a guaranteed issue plan, which gives employees the option to purchase coverage regardless of their current health condition.
  • Lower premiums. Group rates tend to be lower than individual rates.
  • Potentially portable. Depending on the plan design, covered employees may be able to take their coverage with them if they leave the company.
  • Premium payment flexibility. Premiums can be paid by the employer, the employee, or a combination of the two, using pre-tax or after-tax dollars.
  • Tax deductible premiums. You can take pre-tax company-paid premiums as a business tax deduction.
  • Recruitment and retention tool. Having group disability insurance in your benefits program helps attract and retain quality employees.

Benefits include:

  • Various benefit start dates, including first day injury
  • Benefit durations up to 52 weeks
  • Benefit amounts that include 50%-67% of income loss
  • Clinical claims management through highly trained nurses

Powerful Income Protection, Better Business Outcomes

Businesses can help employees protect their incomes and rebuild their lives after an unexpected event with group disability insurance from Michigan Beverage Collective. We handle and streamline administration of benefits, easing the claims process to get employees back to work as soon as is reasonably possible. Contact us today for details.


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