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, 2020 the NJ state temporary disability insurance benefit will increase 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 January 1, 2021, employees contribute .47% on the first $138,200 of earnings, with a maximum annual contribution of $$649.54. 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.
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:
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.
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.
by Michael Cohen