Short Term Disability, Explained
Because different benefits have different definitions and the devil is in the details…
As more states add legislation for paid family leave and the federal government introduces programs to help manage Covid-related disability claims, short-term disability has become more confusing than ever.
To help brokers understand the profit potential in these benefits and to help business owners sort through the “alphabet soup” of STD (short-term disability), The DBL Center offers your complete guide to short term disability offerings.
What is Short Term Disability (STD)?
Short-term disability is the all-encompassing phrase to describe disability benefits for employees who are unable to work due to illness or injury that did not occur at work. (Workers’ compensation covers work-related illnesses and injuries.)
What is New York State Disability Benefits Law (NYS DBL)?
Disability Benefits Law is New York’s statutory temporary disability insurance coverage. Business owners can write their policies through the state or privately. DBL pays employees 50% of their salary to a maximum of $170 per week of benefit up to 26 weeks.
What is Enriched DBL?
Increasing benefits that extend beyond the statutory DBL (Disability Benefits Law) coverage in the form of a higher maximum benefit. It can also include shorter waiting periods or a longer maximum duration. All eligible employees must be included.
What is NJ TDB?
Temporary Disability Benefits cover New Jersey employees out of work for illness or injury up to 26 weeks. Effective July 1, 2020, the NJ TDB benefit increased to 85% of a worker’s average weekly salary to a maximum of $881 per week. To pay for these benefit increases, for the first time, employees are contributing premiums for the NJTDB coverage on a different taxable wage base than employers. As of 1/1/2020 employees are contributing .26% on the first $134,900 of earnings (maximum annual contribution of $350.74). Employers are contributing based on employees’ earnings capped at $35,500. As in New York, NJ business owners can write their policies privately or through the state.
What is NYS PFL?
New York State Paid Family Leave covers individuals up to 67% average weekly wage replacement for up to 12 weeks for the birth, adoption or foster care of a child; to care for a seriously ill family member; or to manage the household while a spouse is deployed. It’s written as a rider to DBL.
What is Massachusetts PFML?
Covered individuals are eligible for no more than 26 total weeks in the aggregate of paid family and medical leave in a single benefit year under the new Massachusetts PFML (Paid Family and Medical Leave) legislation. This was introduced to cover individuals out of work to care for a newborn, adopted or foster child in the first year; to care for a family member; or to manage the household while a spouse is deployed. PFML adds medical leave, to care for a family member unable to work due to illness or injury as of July 1, 2021.
What is DI?
Disability Income is private disability coverage offered to individuals or sold as a group plan in states that do not mandate statutory STD. It encompasses paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD).
What is FMLA?
Unlike the benefits above, the Family Medical Leave Act (FMLA) is a federal law that guarantees an employee’s job if they are out for family or medical leave. It does not pay benefits.
What is FFCRA?
The Families First Coronavirus Relief Act (FFCRA) provides income replacement at 2/3 the regular rate of pay for up to 80 weeks for employees in quarantine as a result of Covid-19 or seeking treatment for coronavirus, and an additional 10 weeks for employees whose school or childcare provider has closed due to the pandemic. This is paid by employers, with federal tax credits to offset the costs.
The DBL Center has also created a handy slide of this information for easy reference. You can view the it below and on our LinkedIn feed.
NJ State Temporary Disability Insurance Rate and Benefits Increase: Creating Opportunities from Change
Last year, the State of New Jersey announced a rate hike and benefits increase for NJ State temporary disability insurance to go into effect in 2020.
The first increase took place on January 1, 2020, when the NJ state disability insurance benefit increased to 66.67% of a worker’s average weekly salary to a maximum of $667 per week through June 30, 2020.
As of July 1, the NJ state temporary disability insurance benefit increased to 85% of a worker’s average weekly salary up to $881 per week.
Along with the benefit increases, of course, comes a rate hike.
For the first time in history, employees will contribute premium for NJ state temporary disability insurance (NJ TDB) on a different taxable wage base than employers.
As of July 1, 2020, employees contribute .26% on the first $134,900 of earnings, with a maximum annual contribution of $350.74). Employers, on the other hand, contribute based on employees’ earnings, with a cap of $35,500 for the company.
In 2019, New Jersey employees contributed .17% on the first $34,400 in earnings, with a maximum annual contribution of $58.48. The unprecedented increase in 2020 equals up to six times the premium for workers.
Privatize TDB in NJ for Better Service and Happier Customers
Does it seem as if 2020 won’t give insurance brokers, business owners, (or anyone else) a break? Hang tight.
Here at The DBL Center, we believe in turning challenges into opportunities. And we are here to help you make that happen, too.
While the benefit increase puts New Jersey ahead of neighboring states for temporary disability insurance, it can sting the pockets of employees and business owners at a time when people can least afford it.
There has never been a better time for statutory insurance brokers to privatize temporary disability benefits in New Jersey. By privatizing TDB, your customers will receive:
- Benefits equal to or better than the state maximum
- Faster payouts, choice of payment options
- White-glove customer service with The DBL Center as your back-office staff
Additionally, as a DBL Center broker, you’ll gain access to our exclusive Broker Dashboard: Net Revenue Tracker, allowing you to stay on top of pending cancellations, renewals, and commissions.
Easy, Three-Step Process to Privatize NJ Temporary Disability Insurance
Since the state waived the signature requirement for privatizing temporary disability benefits in NJ, it’s never been easier to privatize TDB coverage for your customers. You can write private TDB policies now for 2021 and put your customers in a position to receive stellar service and more options than the state of NJ provides for short-term temporary disability benefits.
Plus, you can help your clients save even more by bundling ancillary benefits like dental, vision, and Group Life / AD&D with their statutory disability coverage.
Need help privatizing TDB for your customers? The DBL Center is here. Follow this three-step process and reach out here or use our exclusive on-site live chat if you need help.
Don’t Be Late (on DBL Premiums): Let The DBL Center Help You Get the Commissions You Deserve
Insurance brokers know that DBL stands for “Disability Benefits Law,” which provides statutory New York State short term disability insurance to qualifying workers through employer-funded benefits packages.
But here at DBL Center, we love a good play on words. We want to remind our brokers that this year, more than ever, the “DBL” in DBL Center stands for “Don’t be late.” That is, don’t be late with your NY disability insurance premiums and delay your incoming commissions because clients haven’t remitted premiums on time.
Are You Leaving Commissions on the Table?
Across New York, businesses have closed as a result of the pandemic. From mom-and-pop boutiques, to law firms, restaurants, gyms, and even larger companies, New York business owners felt the crush of the quarantine, followed by re-opening regulations, and a public that is wary of leaving their homes or spending money.
As we continue to struggle with these challenges, one thing insurance brokers shouldn’t have to worry about is whether or not their clients still in business have paid their premiums.
Yet, it’s a fact of life. Brokers face cancellations due to non-pays, client bookkeeping errors, and other lapses that can delay your commissions.
Even in the best of times, you don’t want to have to waste time chasing down clients. The Covid-19 pandemic complicated it further, because you don’t know who:
• Went out of business
• Doesn’t have the money to pay
• Received a PPP loan but perhaps thought premiums were yet another bill waived due to the pandemic
• Put their statutory DBL last on the list of payments to make, after paying the lease and keeping the lights on
Whatever your client’s situation, if they have an in-force NYS DBL policy or enriched DBL, they owe the premium amount due – and you deserve your commission.
We’re More Than Your Insurance Wholesaler, We’re Your Bill Collector
DBL Center is here to remind your customers “don’t be late,” on their DBL payments. Through our powerful Broker Dashboard: Net Revenue Tracker, we can track renewals, cancellations, and non-pays.
Then we send those emails and make those uncomfortable calls reminding your clients their New York state DBL payment is due. We use the utmost tact, and will get that bill paid so you can collect your commission.
And if a company has gone out of business? We’ll adjust the Broker Dashboard records to reflect that. No more wasted time on out-of-business companies.
Tracking Lives After Layoffs and Furloughs
Many customers might have NYS DBL premium payments due, but not understand the amount owed due to a change in their overall employee head count. If their bill does not reflect the new number of lives, reflective of layoffs or furloughs that occurred as a result of the Covid-19 pandemic, we’ll recalculate the total amount due.
And, again, get that bill paid so you can collect your commission.
Free Up Your Time to Grow Your Business
When you help your clients purchase NY disability insurance through The DBL Center, we serve as your back-office staff to manage your accounts. That frees you up to do what you do best, which is sell insurance – even in a struggling economy.
With access to our Broker Dashboard: Net Revenue Tracker, you’ll always know what you’re earning at a glance. You can track accounts ready for renewal, cancellations, and commissions. The Broker Dashboard helps you stay on top of it all – and The DBL Center team is here to help you manage it.
As I stated in my last video interview, the year is more than half over. Halloween is just around the corner and before you know it, we’ll all be closing the books on 2020 and hoping for better things ahead.
Now is the time to start planning for 2021. What will your book of business look like? Are you putting the time into sales or hunting down premium payments? Let us help so we can all look forward to a better future.
Your Clients Need the Best Long Term Disability Insurance
In any industry, employees represent the company’s greatest resource. This is true in your insurance agency, and also for the customers you serve. The DBL Center has been heavily focused on short term disability insurance in NY State recently, as we continue into the third year of Paid Family Leave coverage while having to contend with Covid-19 related claims.
But temporary disability benefits in New York should also include long-term disability insurance. If you aren’t using the DBL Center’s carrier relationships to up-sell the best long term disability insurance, you’re leaving profits on the table.
Help Your Customers Keep Employees by Offering the Best Long Term Disability Insurance
In January, the U.S. Census Bureau reported that NY state lost 1.4 million residents since 2010, and is one of only 10 states to see their population drop between 2018 and 2019. And that was before the pandemic caused many NYC residents to leave for suburban regions – in NY State or beyond.
In a recent post, Kelvin Joseph of Kool Kel Marketing discussed saving business owners money and helping them increase profitability. Long term disability insurance and other ancillary benefits packages have been shown to increase employee retention, which saves both time and money.
If your customers want to keep their top employees in New York, they need to offer the safety net and peace-of-mind long term disability insurance, or disability income (DI) insurance, provides.
Statutory Temporary Disability Benefits in New York Don’t Pay Enough for Most Workers
Through NYS DBL, employers must provide statutory disability insurance in NY state. But the benefits fall short of the cost-of-living in most regions of the state. A benefit increase would undoubtedly result in a premium increase, and employers would bear most of this burden. Plus, short term disability runs out after 26 weeks, which may not be enough time to recover from many injuries or illnesses.
So, what’s the solution to give New York workers and business owners the long term disability income they need?
The DBL Center gives our brokers access to the best long term disability insurance available in New York. Once you get your foot in the door with an affordable, private DBL policy, upsell your customers to long term disability insurance.
You can provide a choice of plans to your customers to fit their needs and budget:
- Voluntary benefits packages, which are fully funded by employees using pre-tax dollars
- Contributory plans, which are cost-shared between the employee and employer
- Non-contributory plans, which are fully paid for by the employer.
In a non-contributory plan, the executives in a company can use the benefit as a tax deduction and receive a tax free benefit if they ever need to file a long term disability insurance claim in NY State.
Plans have a benefit maximum of $15,000 per month, covering up to 60% of an individual’s salary up to age 65 if the covered executive cannot work in their own occupation. That’s a stark contrast to the NYS DBL maximum payout of $170 per week.
We offer various tiered plans for long-term disability insurance in NY State from our top preferred carrier partners:
- Class I (Executives Only) – Covers 60% of salary to a maximum of $15,000/mos. up to age 65 if the individual is unable to perform their own occupation. 90- or 180-day waiting period.
- Class II (Management Only) -Covers 60% of salary to $5,000/mos. up to age 65 if the individual is unable to perform their own occupation for two years and any occupation thereafter. 180 day waiting period.
- Class III (All Other Employees) – Covers 60% of salary up to $2,000/mos. for up to five years the individual is unable to perform their own occupation. 180 day waiting period.
Earn More with The DBL Center
The DBL Center works for our insurance brokers to help them increase commissions with the best long-term and temporary disability benefit plans in New York.
We manage and maintain the policies for you while you focus on expanding your book of business to increase your profits. Contact us today to find the best long term disability insurance in NY State for your customers.
Private Disability Insurance in New York: Save Money and Create Happier Customers
As New York begins its phased reopening, many employers seek to call back workers on furlough or re-hire employees who have been laid off. Employers may also be looking for ways to reduce expenses as they come off possibly the roughest financial quarter New York businesses have faced in decades.
Now, more than ever, your clients are looking to save money and improve retention (or entice employees back to work). Enriching DBL benefits through private disability insurance in New York is one way your customers can:
- Enjoy better service
- Get an enriched benefits package
- Save money by bundling statutory NY disability insurance with ancillary benefits
Why You Should Encourage Employers to Privatize NY Disability Insurance
The New York State Disability Benefits Law (DBL) gives employers the option to purchase NY state disability insurance through the New York State Insurance Fund (NYSIF). But writing policies through the NYSIF does not offer the advantages of private disability insurance. New York businesses who write DBL with the NYSIF max out coverage limits at $170 a week for 26 weeks. Who could live on that, especially in downstate New York?
When employers write NY Disability Benefits insurance through a private insurance carrier, they can enhance coverage limits past the state minimum, improve employee retention, and enjoy more personalized service. Additionally, DBL Center has relationships with multiple carriers, to offer a wide range of coverage options.
Why Insurance Brokers Should Choose DBL Center for New York Disability Benefits Coverage
The DBL Center has been helping NY insurance brokers write private disability insurance in New York for more than 40 years. Our instant binding application helps you prepare quotes from multiple carriers in a matter of minutes.
You can bundle enriched NY state disability insurance (DBL) with ancillary benefits like vision, dental, and group life / AD&D for added savings. Plus, you’ll gain access to our state-of-the-art Broker Dashboard: Net Revenue Tracker, helping you keep sight of it all with just a click.
Compare rates, grow your book of business, and earn more commission while DBL Center serves as your back-office support staff to manage and maintain your policies.
Bind your application for NY disability insurance (DBL) today!
Massachusetts Family and Medical Leave Act Opens Doors for Brokers to Privatize Coverage
Massachusetts becomes the fourth state in the Northeast to mandate benefits under a paid family and medical leave act
DBL Center is ready to offer Massachusetts insurance brokers incredible savings on PFML plans under the new Massachusetts Paid Family and Medical Leave Act.
The MA Paid Family and Medical Leave Act applies to individuals who need time off:
• Due to a serious health condition
• To care for a newborn, newly adopted, or new foster child within the first year of the event
• To care for family while a spouse is deployed in the Armed Forces
• To care for a family member of any age with a serious health condition
Help Your Customers Privatize Massachusetts Family and Medical Leave Act Coverage
As in New York and New Jersey, states which have offered short-term disability and paid family leave for several years, business owners in Massachusetts have the option to privatize their FMLA policies for substantial cost reductions.
By law, private FMLA plans must offer benefits of the same amount and duration – or better – than plans underwritten and paid for by the state. That’s why it’s important for business owners to find a source they can trust to write their family and medical leave act coverage in Massachusetts. And that’s where DBL Center insurance brokers come in, offering stellar customer service and lower premiums thanks to the relationships their wholesale general agency has developed over five decades.
Bundle PFML to Save Even More
PFML is a stand-alone benefit, but not every carrier can write PFML as a stand-alone policy. DBL Center has the industry connections and the volume to help Massachusetts insurance brokers get the best deals for their customers.
DBL Center delivers white-glove service, low premiums, and superior benefits packages. Your clients can save even more by bundling FMLA coverage with group ancillary benefits like dental, vision, and group life / AD&D.
DBL Center Enhances Focus on Customer Service and Technology
As testament to the company’s dedication to customer service and education, DBL Center recently launched a Massachusetts Paid Family and Medical Leave Act Resource Center on its website.
DBL Center also recently introduced 24/7 live chat on its website. Simply type in the chat box and a knowledgeable representative will answer your questions about the Massachusetts Paid Family and Medical Act, short- or long-term disability insurance, and group ancillary benefits.
“Massachusetts in the fourth state in our region to introduce paid family leave. As experts in short-term disability and paid family leave in New York, New Jersey, and Connecticut, DBL Center is poised to become the number one source for brokers to privatize PFML in Massachusetts for their customers,” says DBL Center President and CEO Michael Cohen. “We’re looking forward to the profit potential the Massachusetts Paid Family and Medical Leave Act presents to our brokers.”
On the Mic with Mike: Selena Kutschera Talks About PFL, DBL and the Benefits of the Broker Dashboard
Working with the top insurance wholesaler in NY gives Selena a chance to make a difference for brokers
Selena Kutschera, DBL Center’s Director of DBL and TDB never actually applied to work at DBL Center. She joined the family when DBL Center acquired competitor Combined DBL, a competitive insurance wholesaler in NY, in 2014.
How she got the job at Combined DBL, straight out of college with no insurance industry experience, is quite a story.
“I found the job listing in the newspaper,” she tells DBL Center owner and president Michael Cohen. “I begged for an interview, but they had already closed out their interviews because they knew who they were going to hire.”
Kutschera didn’t stop pushing for the interview, however, and, ultimately, got the job. Through her hard work and perseverance, she’s become a leader in wholesale TDB and DBL sales.
It was this tenacity that impressed DBL Center founder David Cohen at the time of the acquisition. “That was the kind of personality my father was looking for,” Michael Cohen recalls. “I remember him saying, ‘I don’t know if we’ll get the deal, but Selena will join us.’ We did make the deal and here we are, five years later.”
Read on to learn how Selena Kutschera is helping DBL Center brokers manage the challenges of PFL and prepare for new opportunities in New Jersey.
Then watch the video to find out Selena’s (second) favorite word, what musician she’s not-so-secretly obsessed with, and what she’d be doing if she wasn’t serving the DBL and TDB insurance needs at one of the top insurance wholesalers in NY.
Michael Cohen: What’s the most exciting thing that we’ve done as a team, in your opinion, since the acquisition?
Selena: The program – the Broker Dashboard. Just coming together and building something, changing the game.
Michael: How has that been an upside for you?
Selena: We can track now. We can track the business. We can track what we’ve lost, what we’ve gained, the brokers, who’s writing, who’s not writing. It just makes it easier.
Michael: Can you describe the process we use when we get together and track retention and new business?
Selena: When we look at our book through the Broker Dashboard, we look at what we can keep out of what’s lost. Our cancellations. We know DBL’s a moving target. Your DBL’s come on, they come off, there are non-pays all the time. That’s the first thing we address, the non-pays. Can we get them reinstated? If we can, that puts business back into the books.
Any time coverage is replaced, we want to find out why it was replaced. Was it something we lost? Did the broker lose it? Did they replace it on us, and why did they replace it? We have to analyze what happened—and why—to get that business back.
Michael: What has the feedback been from the brokers since we implemented the dashboard?
Selena: They’re surprised about their non-pays and what’s cancelled and what’s not.
Michael: Everyone thought Paid Family Leave was going to be a home run, but in the beginning, it wasn’t. Why? And what have you been doing to help overcome those challenges?
Selena: It just added another layer of tracking. Who doesn’t want to pay their PFL [rider]? Who didn’t think they needed Paid Family Leave? They pay the DBL; they don’t pay the PFL. That’s really been the issue. Now, we’re getting the complaints that the insured made the payment, but they only paid a portion of it, or they shortchanged it. So now it’s a matter of them understanding how to pay the bills.
Mike: What do you feel is the biggest dilemma in the overall statutory environment? You’re in the trenches and you’re also involved in commissions. What’s an issue for us that’s outside of our control as a wholesale insurance broker in NY?
Selena: I guess what’s outside of our control is just the insureds making payments. That’s out of our control as an insurance wholesaler in NY. Is the $170 [weekly] benefit in New York State for disability low? Absolutely.
What I do find is some employers want to buy up and some employers don’t want to hear it. I agree with the buying up because the reality is the Paid Family Leave is for somebody else—to take care of a baby, child, or family member—and the disability is for yourself. And if you need to go out on disability, why do you need to go out at a $170, when the PFL benefit is $750 and change? It’s $752 [for 2019].
Mike: Are you excited about what’s happening in Jersey? Explain that.
Selena: Absolutely! Jersey just lifted its signature requirement—there’s no more signature requirement to move to a private carrier. So, it makes it easier for us to write this product, as 98% of it sits with the state right now. And the benefit is going up tremendously.
If you’re shopping for a new insurance wholesaler in NY or NJ or need help writing TDB or DBL, let Selena Kutschera and DBL Center help you. Reach out today.
The Rule of 72 and Why Your Customers Need Enriched DBL
In our last post, we spoke about using ancillary benefits to help reduce the financial stress that’s placed on employees.
This is especially crucial for employees in the New York tri-state area, which includes regions with the highest cost of living in the country. An accident or illness can leave an employee’s finances depleted. The New York State minimum for DBL coverage hasn’t kept up with inflation and isn’t enough to live on. In fact, the statutory disability benefit in New York has not increased since 1989.
The Rule of 72, for example, states that a specific dollar amount invested at an annual fixed interest rate of 10% would take 7.2 years to double. Yet, in 30 years the DBL benefit has remained the same.
Why not enrich DBL for a very low cost, ramping up the ROI on the investment?
Enriching DBL helps this important benefit keep pace with inflation to cover more of an employer or employee’s living expenses if they are ill or injured.
Consider the Needs of Your Customers
While it’s important to consider hourly workers who may be living paycheck to paycheck, it’s also important for brokers to consider the needs of company owners and top-level employees, including CEOs, CFOs, and HR managers, who make the buying decisions when it comes to employee benefits.
Of course, c-level executives want the best benefits for their employees to improve morale, maximize productivity, and aid recruiting and retention. But if you can also sell decisionmakers on the benefits that also serve their best financial interests, you’ll earn their lifelong trust.
Twenty years ago, Governor Mario Cuomo voted to increase the statutory disability benefit. His son, Andrew Cuomo, decided not to increase DBL. Instead, he introduced Paid Family Leave as a statutory benefit in New York.
But PFL – while it’s undoubtedly an important benefit – doesn’t apply to a vast majority of workers. Many middle-aged and older employees are past child-raising years and have already faced the loss of their parents. People in these demographics, especially middle managers and top executives, need benefits that will appeal to their needs.
Enriched DBL is a “set it and forget it” benefit. Once a business owner enhances their short-term disability benefits in New York, they will renew automatically each year. They aren’t likely to go back to the state minimum benefits.
Why Is Enriched DBL Such a Good Investment for Company Executives?
Many business owners and executives have savings and investments to cover a worst-case scenario such as an accident or illness that could leave them unable to work.
But, in fact, enriching DBL can be the smartest investment company leaders can make.
If it takes 7.2 years to double your income from investments at a rate of 10%, you don’t want to pull that money out to cover your living expenses.
Enriched DBL allows employers and employees – from c-level executives to hourly wage workers – to keep their savings where it is and receive a rate-of-return on their insurance premium that is far beyond any investment.
If a company enriches DBL by 5X, they will only pay $9.75/mo/male in premium and $11.50/mo/female, and if they need to make a claim, receive $850 per week for up to 26 weeks.
When you show your customers the math – and the benefit of leaving their investments growing – they will ask you to enrich DBL for their own financial peace-of-mind.
Build Relationships with the Right Advice
Smart insurance brokers are serving two customers – the employees who use the benefits, and the company owners and HR executives who are making the decisions on what benefits to offer.
When you can open doors to give them a low-cost, high-return benefit that appeals to employers and employees alike, you can gain trust and earn their business for life.
Connect with us!
PFL Year Two: How to Keep Employees Engaged with Enriched DBL
Paid Family Leave has changed the modern workplace for many New York businesses. In a blink, New York companies became more family-friendly and flexible, setting standards with one of the most generous PFL policies in the country.
But what about employees left behind while their co-workers took leave to bond with a newborn or care for an ill, aging, or disabled family member?
As a New York broker, you have a unique opportunity to help your clients improve retention and company morale by addressing the demographic that is least likely to need family leave benefits but may be left behind to pick up the slack for employees on leave.
For companies who already had a generous maternity policy in place, it is probably business as usual. But companies who have never provided maternity leave for employees may have faced some challenges through the first year of PFL, which insurance brokers can help them address.
“New York businesses should explore company operations and their existing employee benefits packages to develop a plan to help keep all employees, not just those who may be eligible for PFL, engaged and happy with what the company offers,” says DBL Center President Michael Cohen.
Who’s Covering the Job Duties of Employees on PFL?
When an employee informs announces they will be taking PFL – or when managers first discover that an employee or their spouse is expecting a baby – it’s time to develop a contingency plan for those who will be picking up the slack.
Planning ahead is crucial so employees don’t feel put upon. In most cases with PFL coverage – as opposed to DBL which is available when an employee is injured or ill – employers have plenty of warning. They may not know the exact date a worker will go on leave. But the expectant parent can begin training their co-workers two-to-three months before the expected due date or adoption day to minimize frustration and ensure the employees understand how their new role will mesh with their existing duties.
Consider Who’s Using PFL – And Who Isn’t
Last year, 76.7% of people who used PFL through DBL carrier Shelterpoint took leave to care for a newborn baby or newly adopted child. Another 23.2% used it to care for a disabled, ill, or aging family member, and 0.1% used it to hold down the fort while a military spouse was deployed.
Now, let’s look at who is less likely to take PFL benefits. In general, baby boomers, millennial or GenX couples not planning to have children, and (for now) most GenZ employees just entering the workforce won’t have any need for PFL.
While Baby Boomers and child-free couples may not seem like a large percentage of the workplace, let’s consider some recent statistics:
• People aged 55+ took 1.4 million of the 2.9 million new jobs in 2018
• 39.2% of Americans ages 55-and-up were working in 2018
• 65.5% of 55- to 64-year-olds are still in the workforce, and 19.6 percent of 65+ are still working, too
• Boomers and the Silent Generation (born between 1925 and 1945) made up 27% of the workforce in 2017, according to PEW Research
Boomers possess massive amounts of knowledge and experience in the workplace. Because of that knowledge and experience, they are well-equipped to help pick up the slack when their co-workers take PFL. “It’s important to make employees feel appreciated for their extra work, and there are many ways to do this,” Cohen says. “Enriching mandatory DBL can give employers the most bang for their buck and provide employees with an important benefit that will give them peace-of-mind if they become ill or injured.”
Enrich NYS DBL Coverage
The first step is for brokers to help customers examine their existing employee benefits packages. Current mandatory NY State DBL coverage only gives employees a maximum of $170 per week for 26 weeks. Very few people can live on that in New York, especially in the New York metro area.
Employers can enrich DBL coverage to pay up to 50% of an employee’s salary up to $850 per week up to 26 weeks. This puts DBL coverage on pace with PFL. In fact, enriched DBL can exceed current PFL pay-outs, which max out at 55% of an employee’s average weekly salary for 8 weeks, with a maximum benefit of $746.41 per week.
Your customers can also add Hospital Cash indemnity insurance through Shelterpoint to give hospitalized employees who are collecting DBL an additional $165 per day ($240 in NY metro areas) with no cap for the number of continuous days of coverage. Patients staying in Skilled Nursing Facilities receive the same benefit level, limited to a stay of 5 consecutive days.
“Compared to neighboring New Jersey, New York’s statutory disability benefits package is lacking,” Cohen says. “Enriching DBL benefits has always been a good idea to help attract top talent and increase retention. In light of PFL, it’s more important than ever before. It’s up to brokers to educate employers, creating a win-win situation, increasing commissions for brokers while creating happier customers.”
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Hawaii TDI: Did You Know Hawaii Offers Disability Insurance, Too?
Don’t miss the profit opportunities in selling Hawaii TDI
Most DBL Center brokers focus their business efforts in the New York Tri-state area, specifically New York and New Jersey. DBL coverage (Disability Benefits Law) insurance in New York and Temporary Disability Benefits (TDB) in New Jersey are lucrative insurance products, especially in New York where brokers can upsell New York business owners to an enriched DBL policy.
But many
brokers aren’t aware that Hawaii is one of only a handful of states that offer temporary disability insurance. And The DBL Center can connect you with Hawaii’s largest TDI carrier to provide Hawaii TDI to businesses.
Understand the Specifics of Hawaii TDI
To tap into the profit potential of TDI coverage in Hawaii, you’ll first want to understand the specifics of these coverage packages.
TDI benefits can last for up to 26 weeks total during the benefit year and begin after seven days of disability. Like NJ TDB and NYS DBL, benefits are payable for individuals who are ill or injured and unable to work, as long as the injury did not occur on the job. Employees must file a TDI claim within 90 days of the injury, unless they can provide a valid reason for the delay.
Like DBL and TDB, workers who file a TDI claim must have been employed immediately before the claim, including vacation time or PTO. In Hawaii, employees must have at least 14 weeks of employment totaling 20 hours per week or more and must have earned at least $400 in the 52 weeks before disability.
TDI benefits pay workers in Hawaii up to 58 percent of their average weekly wage up to the State of Hawaii maximum benefit amount, which was $620 in 2018. This is just slightly less than TDB in the State of New Jersey, and much more generous than New York’s DBL benefits before enrichment.
In fact, because TDB and Hawaii TDI are so similar, brokers may wish to pursue this market to expand their book of business. If you already sell healthcare in Hawaii, TDI is a logical cross-selling opportunity. If you have a large, national brokerage, selling Hawaii TDI can be a foot in the door to also sell healthcare coverage, group life, and ancillary benefits.
Let DBL Center Help You with Your Customers in Hawaii
Most of our brokers and industry colleagues know we moved our New York offices a few miles away to bigger building and larger office space in Melville.
But many people don’t know that DBL Center also has an office in Hawaii, where we provide more than 3,500 Hawaiian businesses with statutory TDI coverage and ancillary benefits.
If you run a national insurance agency with business customers who span the country, there is a wide-open market in Hawaii for TDI coverage. As with NJ DBL, there are a number of benefits for Hawaii business owners to move their policy from state-funded coverage to privatized TDI.
Helping Hawaii Insurance Agents Grow
If you are a Hawaii-based broker seeking to grow your book of business locally, we can help. We will be your back-office team to provide faster service and timely payouts. You’ll gain access to our state-of-the-art broker dashboard, permitting you to track cancellations, renewals, and commissions with just a few clicks. Our ancillary lines, including group life, vision, and dental, can help you increase commissions with highly coveted benefits.
Isn’t time to make the leap and start selling Hawaii TDI coverage? DBL Center will be your white-glove, white-label service provider and your back-office team to ensure your customers receive the service they expect and deserve.