Group long-term disability insurance is a critically importantpart of any employee benefits package considering that disabilitiesoccur more often than people realize, and can last for years,according to Barry Petruzzi, second vice president, group life anddisability for Guardian Life insurance Co.of America. The SocialSecurity Administration estimates 30 percent of those who entertoday's work force will become disabled before they retire, whilethe National Safety Council notes that a disabling injury occursevery three seconds in public and every four seconds at home.
There is the potential for a long term disability to last untilsomeone reaches retirement age, which can equate to years, or evendecades, without a steady pay check. Employers and their employeesneed to be able to count on their insurance carrier being there ifthe worst should happen. So what should you look for in aninsurance carrier?
Petruzzi believes that there are several key elements thatdetermine an insurer's financial strength. The hallmarks of astrong LTD carrier include a strong capital position, financialstability, conservative investment philosophy, independentrecognition, and outstanding customer service with excellent claimspaying ability.
Strong Capital Position: In today's economic environment, companiesneed to be well capitalized to meet financial obligations likepaying long term disability claims over an extended period oftime.
Financial Stability: Look for a company that has a long trackrecord of providing benefit solutions and claims payingability.
Conservative investment philosophy: Many companies are distractedby the short-term demands of Wall Street, instead of the needs oftheir customers. Working with a company that is focused on itscustomers will ensure that long-term benefit needs are met.
Independent recognition: Work with a company that is recognized assteady and strong by the ratings agencies.
Outstanding Customer Service: When selecting a disability plan,clients want to know that their carrier will be able to meet longterm commitments. They also want their carrier to pay claimsquickly and accurately, especially in turbulent economictimes.
By choosing a stable insurance carrier, employers are in effectinsuring the lives of their employees and helping families whenthey can most use financial assistance, Petruzzi explains. But on amore basic level, they're fulfilling their fiduciary responsibilityunder the law to secure the best possible benefits for theiremployees and avoiding a crisis situation.
-- Benefits Selling staff