What’s the difference between short-term and long-term disability insurance?

Short-term disability usually covers a few weeks to six months of lost income due to temporary health issues. Long-term disability kicks in after that—sometimes for years—if someone can’t return to work. We’ll help you decide whether to offer one or both types based on your business goals and employee expectations.

How much of an employee’s salary is replaced by disability insurance?

Most plans replace 50% to 70% of an employee’s gross income, with a maximum monthly benefit. These policies are designed to support financial stability while encouraging return to work. We’ll help you structure benefits that are meaningful but manageable.

Do employees pay taxes on disability benefits?

It depends on how premiums are paid. If the employer pays the premium, the benefits are usually taxable. If the employee pays with after-tax dollars, the benefits are tax-free. We’ll guide you through these details during plan setup.

Can small businesses in California offer disability insurance?

Absolutely. Small and mid-sized companies often use group disability coverage as a standout benefit—especially when medical plans are basic. California employers are also subject to state disability insurance rules (SDI), and we help integrate your group coverage with state requirements.

What happens if an employee returns to work part-time?

Many policies offer partial disability benefits that continue during phased return-to-work periods. This helps employees ease back into work without losing all their support. We’ll make sure your plan includes flexibility for real-life recovery paths.

Group Disability Insurance

What’s the difference between short-term and long-term disability insurance?
Short-term disability usually covers a few weeks to six months of lost income due to temporary health issues. Long-term disability kicks in after that—sometimes for years—if someone can’t return to work. We’ll help you decide whether to offer one or both types based on your business goals and employee expectations.
How much of an employee’s salary is replaced by disability insurance?
Most plans replace 50% to 70% of an employee’s gross income, with a maximum monthly benefit. These policies are designed to support financial stability while encouraging return to work. We’ll help you structure benefits that are meaningful but manageable.
Do employees pay taxes on disability benefits?
It depends on how premiums are paid. If the employer pays the premium, the benefits are usually taxable. If the employee pays with after-tax dollars, the benefits are tax-free. We’ll guide you through these details during plan setup.
Can small businesses in California offer disability insurance?
Absolutely. Small and mid-sized companies often use group disability coverage as a standout benefit—especially when medical plans are basic. California employers are also subject to state disability insurance rules (SDI), and we help integrate your group coverage with state requirements.
What happens if an employee returns to work part-time?
Many policies offer partial disability benefits that continue during phased return-to-work periods. This helps employees ease back into work without losing all their support. We’ll make sure your plan includes flexibility for real-life recovery paths.