Secure Future Growth with Key Employee Disability Insurance
Cost Considerations and Coverage Options
The cost of Key Employee Disability Insurance varies based on several factors, including the size of the business, the industry, and the specific roles covered. Premiums are typically calculated based on the salary of the key employee and the level of coverage desired. While this insurance represents an additional expense, the potential cost savings in the event of a key employee's disability far outweigh the premiums. For instance, the National Association of Insurance Commissioners notes that the average cost of a long-term disability claim is approximately $386,0002.
When considering coverage options, businesses can choose between short-term and long-term disability policies. Short-term policies typically cover disabilities lasting a few months, while long-term policies provide coverage for more extended periods. It’s crucial to evaluate your company’s specific needs and budget when selecting the appropriate coverage.