Just like New York, New Jersey, Massachusetts, and Connecticut, Hawaii also offers temporary disability insurance to employees for non-work related injury or illness. There is no maternity leave or paid leave component to Hawaii TDI, but the plan provides coverage for a pregnancy-related disability as well as other non-work related illnesses or injuries.
As with the other states, Hawaii increased its maximum disability payments and premium rates for 2021. The new rates for temporary disability insurance in Hawaii are as follows:
In addition, there is a seven-day waiting period before state benefits for Hawaii temporary disability insurance kicks in. Benefits are payable from the eighth day of disability.
The DBL Center entered the Hawaii temporary disability insurance back in 1986. My father, DBL Center Founder David Cohen, was looking for ways to grow the wholesale general agency. He had heard that California offered the benefit and was eager to have offices on both coasts, so he hopped on a plane to L.A. where he connected with a state insurance representative who mentioned, yes, they indeed offer the benefit, but it is not available as a fully insured option. (These were, of course, the days before Google was at your fingertips).
Dave wound up being directed to The State Insurance commissioner, who directed my father to The Hawaiian Islands, telling him they were also a statutory state, with options to privatize. At the time, Hawaii had no general agency presence, so The DBL Center was on the cutting edge of bringing more options and better service to Hawaii business owners by showing them how to privatize TDI.
Never one to pass up a chance to travel, David Cohen got on yet another plane and, upon landing, began forging connections with insurance brokers across the Hawaiian Islands.
Let’s just say the Hawaiian luau shirt he chose may not have been his best choice for his first meeting. I believe his first broker said he looked like he belonged in The Barnum and Bailey Circus, but ultimately, he showed Hawaiian business owners and insurance brokers that The DBL Center understands the statutory insurance industry like no one else does. Through our massive carrier connections we could – and still can, to this day – provide lower premiums and better service than state plans.
Today, we insure several thousand satisfied customers in Hawaii, and the potential to tap into this market exists for insurance brokers across the country.
As the internet makes it easier than ever to connect with business owners across the country, there’s no reason not to tap into the lucrative Hawaii market for temporary disability insurance. As experts in the field of statutory insurance, you can introduce Hawaii business owners to the many advantages of privatizing their TDI coverage, including:
Of course, The DBL Center is always here to assist with our state-of-the-art technology, including the Broker Dashboard: Net Revenue Tracker to help you track cancellations, renewals and commissions so you can keep more of what you earn.
Technology has created a world without geographic boundaries. And let’s face it, when travel once again becomes commonplace again – as it surely will within the coming year – there are worse things than having a network of friends and associates in the beautiful Hawaiian Islands.
As you forge relationships with Hawaii business owners, you’ll want to step into the role of consultative selling. Just as in the mainland U.S., you can save business owners money by offering ancillary benefits, including vision, dental, and group life / AD&D coverage.
These benefits increase retention within companies and help business owners recruit talent in highly competitive fields. In the age of Covid-19, employee benefits, including ancillary benefits, become more important than ever as health and wellness moves to the forefront of our minds.
If you’re ready to explore a lucrative new market with temporary disability insurance in Hawaii, reach out today.
by Michael Cohen
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.
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.