For many companies and local governments, purchasing group disability insurance is one of the biggest decisions they will make in terms of benefits. This is an important choice as it goes a long way in providing employees with the coverage they need should they become disabled down the road.
While many of our California readers receive group disability insurance through their employer, the company that provides the coverage is not necessarily set in stone. In the state of Virginia, for instance, some local governments are beginning to move away from state disability programs and instead purchase coverage through a private company.
Those in Virginia who are interested in making this move are required to do so by Nov. 1, 2013. The state will no longer be providing disability retirement to new employees once the calendar hits 2014.
One of the primary reasons for making a change to a private company is a cheaper rate. This is not always the best way to make a decision on which insurance to purchase, but it always comes into play.
Rockingham County, for example, has decided to purchase disability insurance for employees through the Standard Insurance Company. One of the primary advantages of them doing so is a three year guaranteed rate. Along with a cheaper premium, the county noted that flexibility was also taken into consideration.
Rockingham County schools are also making a change, according to its human resources department. The private company the school district may end up using could offer a lower rate than the Virginia Retirement System.
No matter where you live, from California to Virginia, you realize the importance of having disability insurance. The ability to obtain this coverage through your employer is a benefit that you should not take for granted.
Source: WHSV.com, “Harrisonburg City Schools Turn To Private Company for Disability Insurance” Carly Stephenson, Oct. 16, 2013