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, 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.

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.


Privatize NJ Temporary Disability Insurance: As Easy as 1-2-3


Have your customers privatized NJ temporary disability insurance for potential cost savings and superior customer service?

As we reported in October 2018, the State of New Jersey waived the signature requirement for business owners to obtain privatized New Jersey TDB coverage. This opened the door for brokers to write privatized NJ temporary disability insurance to provide customers with:

  • Potentially lower rates when bundled with other coverage
  • Superior customer service from a private carrier
  • Faster payouts, choice of payment methods
  • Choice of carriers
  • Easier claims process
  • Less red tape

By law, premiums must be the same or lower than NJ temporary disability insurance written through the state. At the same time, benefits packages for New Jersey TDB must be the same as – or better – than state benefits.

State Increases Premiums for NJ Temporary Disability Insurance

New Jersey has always had a robust disability benefits package. In January 2020, New Jersey TDB payouts increased to 66.67% of a worker’s average weekly salary, up to $667 per week through June 30, 2020.

As of July 1, 2020, the benefit grows to 85% of a worker’s average weekly salary, capped at $881 per week.

With these benefit increases come a change in premium payments, too.

Employees now contribute .26% on the first $134,900 of earnings, with a maximum annual contribution of $350.74. Employers have a different taxable wage base than employees. Employers contribute based on employees’ earnings, with a cap of $35,000.

Is It Time for Business Owners to Privatize New Jersey TDB?

If your customers have not privatized New Jersey TDB yet, now’s the time. The next deadline to shift policies from New Jersey TDB written by the state to a private plan takes place June 15, 2020.

We can make it easier than ever for you to help your clients privatize New Jersey TDB – and grow your book of business with a statutory benefit with automatic renewals.

Just follow this simple, three-step process.

1. Instruct your customers to obtain form AC-174.

Brokers can no longer download the AC-174 form for their customers, and your insurance wholesaler also can’t provide it for you. Employers first must visit the New Jersey Department of Labor website and fill out the Employer Application.

This form replaces the previous TWES form. If your customer has already registered, they can go here to log in. From either location, they can download the AC-174 form and fill it out.

The census can help you obtain an accurate quote so there are no surprises for your customer when premiums are due.

2. Provide the AC-174 to DBL Center so we can shop policies through our network of top-rated carriers.

The DBL Center does all the work for you from here. We will shop policies and leverage our industry relationships and volume to find the lowest premiums. You may find your customers can save even more by bundling New Jersey TDB with ancillary benefits like vision, dental, and life insurance.

3. Write the policy and track your commissions through our Broker Dashboard: Net Revenue Tracker.

Once we’ve secured the best coverage and lowest rates we can find for your clients, it will be an easy sell. After all, what business owner would want to pay more through the state and miss out on concierge-level service and faster payouts?

New Yorkers have benefited from private statutory benefits for years. It’s time New Jersey business owners enjoy the same flexibility and superior service they can get from The DBL Center and our dedicated New Jersey rep and brokers.

Let us help you write the policies for your New Jersey clients. You’ll gain access to our proprietary Broker Dashboard: Net Revenue Tracker, where you can track your commissions, renewals, and pending cancellations to improve customer retention. You’ll be able to view your book of business at a glance and access carrier portals with a click.

The world seems to be changing here in the Northeast U.S. every day. The service you receive from The DBL Center is one thing you can always count on.


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.


New York and New Jersey Announce New Premium Rates and Coverage

Father and son on beach

As we return to our offices following Labor Day weekend, the unofficial end of summer, the New York and New Jersey state insurance departments have made some important announcements for business owners and insurance brokers in the two states.

Read on to find out the new premium rates and coverage levels for Statutory Disability and Paid Family Leave plans across the U.S., New Jersey Temporary Disability Benefits (TDB), and New Jersey Family Leave Insurance (FLI).

New York Announces New PFL Employee Contribution

As announced in early 2017, New Yorkers can receive up to 60% of their average weekly wage for up to 10 weeks to care for and bond with a newborn (less than one year old) or newly adopted or newly fostered child, to care for an ill or aging family member, or to take care of the household while a military spouse is deployed. The increased benefit (up from 55% in 2019) comes with an increased premium of 0.270% of an employee’s wages each pay period, not exceeding an annual maximum employee contribution of $196.72.
These rates make NYS PFL benefits some of the most generous in the country. Take a look at this chart to compare benefits and premiums across the U.S.

Policy forms and rate submissions are due October 1, 2019. If you need assistance with PFL coverage for any of your customers, the DBL Center is here to help. As your white-glove, white-label back office staff, we want to make it as simple as possible for your customers to phase in PFL coverage as a rider to their DBL policy and provide you with opportunities to enrich DBL coverage to offer benefits that make good financial sense for all your customers.

New Jersey Announces New Employee Rate for 2020

The New Jersey state insurance fund has also introduced a rate hike increase for 2020, from 17 cents to 26 cents for every $100 in taxable wages. Earlier this year, New Jersey introduced expanded Family Leave Insurance (FLI) benefits as part of its TDB package.

Under the new FLI regulations, the benefits period has expanded from six weeks to 12 weeks, beginning July 1, 2020. In addition, the definition of “family” has increased to include any blood relative of the employee or any individual shown to have a close association that is the equivalent of a family relationship with the employee.

In addition to the rate hike increase, the limit on wages on which taxes are levied for TDB and FLI has increased from 28 times the statewide average weekly wage ($33,700) to 107 times the statewide AWW (approximately $131,100), beginning January 1.

Concurrent with the rate hike, the maximum TDB or FLI benefit has also increased, from $638 to $860 per week. Partial TDB benefits will also be available.

Good News for New Jersey Insurance Brokers

The New York premium and benefits increase is predictable and in line with prior increases since the introduction of PFL. A broker’s best move continues to be selling enriched DBL to provide a benefit that makes sense to top company executives and decision makers within an organization.

The New Jersey hike represents an opportunity for New Jersey insurance brokers to beat the state rate, while providing benefits equal to or better than the state insurance fund, with a higher level of customer service. When New Jersey waived the signature requirement earlier this year, it became easier than ever to get businesses to switch to privatized TDB.

This is the moment New Jersey insurance brokers have waited for; when you break it down, you realize it’s here because of New York’s generous PFL policy.

With family leave enhancements sweeping across the Northeast, employers will want to find ways to stay competitive and recruit working families, millennials, and the future generations of employees. Robust yet low-cost benefits packages, especially in the face of an impending recession, remain one of the best ways to recruit and retain top talent.

Give us a call to take advantage of the white-glove service and support DBL Center offers our tri-state area brokers and expand your book of business as we head into autumn.


On the Mic with Mike: Lori Rose Talks about Privatized TDB in New Jersey

New legislation broadens opportunities for brokers and DBL Center is ready

The State of New Jersey legislature recently voted to waive the signature requirements for companies to switch from a state plan to privatized TDB (Temporary Disability Benefits). Previously, brokers needed signatures from 50% + 1 of all employees within a company to switch.

DBL Center reported on the proposed legislation in October 2018, and the bill passed in February 2019. It goes into effect this month.

DBL Center is making sure our brokers are ready for the change, with our Assistant VP of Ancillary Benefits, Lori Rose leading the charge. For two years now, Lori has helped DBL Center expand its brand and presence over the bridges into New Jersey and provide the level of customized service our New York brokers have come to expect. Using TDB as a doorway to sell more ancillary benefits, including dental, life, and vision, Lori has helped brokers increase their book of business.

Now, as it becomes even easier to write privatized TDB, the opportunities for New Jersey brokers expand.
Lori is ready for the challenge – which involves broker education and lots of hustle. The word “can’t” is not in Lori’s vocabulary. She views the new legislation as an opportunity to help her customers – and all New Jersey brokers – earn more with privatized TDB.

Her desire to help others, her willingness to hustle, and her “team player” attitude is why DBL Center President Michael Cohen calls Lori “a hybrid between a ‘fantabulous’ account manager and a superior sales manager.”

Lori sat down with Mike to talk about privatized TDB and also share some fun facts about herself. Watch the video here.

You can learn even more about Lori in Part 1 of Mike’s interview here.

Mike: What are your goals going into January 1, 2020, due to the changes in New Jersey, where privatized TDB will no longer require employee signatures?
Lori: That’s a great question. That signature requirement has always held companies back, because it was difficult to make a change from a state plan to a private plan. With that going away starting in August 2019, all employers will get the experience from the state — it’s called the AC-174.1. Once they have that information, I’m going to be working with my brokers to help their customers privatize TDB.

A lot of it is training and education to teach brokers about selling New Jersey TDB. My goal is showing them how easy it is for them to work with their clients to see if it makes sense to go to a private plan, not only to save the employer some money, but to get better claims service.

Mike: Tell us about how easy it is for employers to switch to privatized TDB.
Lori: Once upon a time, we had an easy TDB program at [insurance carrier] CNA. We were able to guarantee savings to an employer based on the experience on the AC174.1. That has moved forward in the industry from CNA; Zurich took that program, and now other carriers have jumped onboard. That makes it easy for employers to see their savings with privatized TDB. Now, with no signature requirement, it will help brokers write even more business in 2020 for New Jersey TDB.

Mike: What is your favorite word?
Lori: Fantabulous. And it’s a made-up word.

Mike: What is your least favorite word?
Lori: The word can’t.

Mike: I had a feeling you were going to say that. I really did.
Lori: Because everything is do-able. I consider myself a professional problem solver, and I can get anything done. And when I get it done, it’s fantabulous.

Mike: What motivates you?
Lori: I like helping people. I like providing solutions. I find when I can bring value to the table, that motivates me to do a better job every day. Working as a team.

Mike: What turns you off?
Lori: Negativity. I have to be around that positive energy and surround myself with it, and bring that to others, as well.

Mike: What profession other than yours have you always wanted to do?
Lori: Once upon a time, I was a psychology major. I had always thought I’d go into child psychology. I find that even in this business, it’s all about relationships. It’s about talking to each other. It’s about understanding a person, knowing their needs, and really listening. Being a good listener.


NJ State Disability Maximum Benefit 2019: Do Your Customers Know Their Rights?

Make sure your customers understand the NJ state disability maximum benefit 2019 and more

The NJ state disability maximum benefit 2019 is in full effect as of January 1, 2019, for workers who have become injured, disabled, or given birth any time within the 2019 calendar year.

The NJ state disability maximum benefit 2019 is $650 per week. The maximum benefit for 2019 is up from $637 in 2018. The new rate is applicable only for employees who make a claim in 2019 and is not available retroactively or for injuries or illnesses from 2018.

How Are NJ TDB Benefits Calculated?

The employee’s maximum weekly benefit amount is calculated based on two-thirds of their average weekly wage, based on earnings in the eight calendar weeks before disability began. The weekly wage may include overtime, tips, and cash value of other renumeration, such as employee bonuses.

If the average weekly wage is less than the average weekly wage for the past 26 weeks, the employment may request a recalculation in writing to the Division of Temporary Disability Insurance. This assures payment is fair and remains close to a living wage for the temporary disability benefits applicant.

Disability payments will not begin until seven days after the disability claim is filed and disability begins, and payments cannot exceed 26 weeks within one disability period. Covered government workers must first use all available sick leave.

If combined with renumeration from the employer, the weekly NJ maximum disability benefit cannot exceed the regular weekly wages immediately prior to the disability. For instance, if an employee is paid weekly, and goes out on disability mid-week between the pay cycle, his first disability check plus his next paycheck cannot exceed the prior weekly paycheck.

In addition to the new, higher NJ state maximum disability benefit for 2019, there are a few things your customers should know about NJ TDB, to ensure they are in compliance with New Jersey state laws and treating their employees fairly.

NJ TDB Regulations Your Customers Should Know

As an insurance broker in the state of NJ, whether you are selling health insurance, life insurance, or ancillary benefits, you can take this opportunity to help your customers understand NJ TDB compliance laws. This can help set up a conversation about the benefits of privatizing their TDB policies for enhanced benefits, faster payouts, and better service.

Employers and HR directors should know that a notice outlining employee’s rights under NJ TDB, including the NJ state disability maximum benefit 2019, should be posted in a place where all employees can view and read it, typically an employee break room or other gathering place.

Employees should also be informed about NJ temporary disability benefits when they are first hired, if an employee notifies the employer that they are taking time off for a situation that could be eligible for NJ TDB benefits, or any time an employee asks for information about their temporary disability benefits.

Does It Pay to Privatize TDB for Your Customers?

Many New Jersey business owners aren’t aware they can privatize TDB for better service and the equal (or better) benefits at the same rates.

The state of NJ is backed up on processing temporary disability claims, resulting in benefit delays. If an employee needs help filing the forms or isn’t sure which form to file, it can be difficult to reach someone in the State of New Jersey Department of Labor Division of Temporary Disability Insurance.

In addition, a private TDB policy gives your customers many other benefits, including disability payments in the form of direct deposit rather than a debit card. By privatizing their TDB package with a major carrier, they may be eligible for rate discounts on ancillary benefits, too.

As a broker, when you privatize your customers’ TDB and write the policies through DBL Center, you’ll gain access to our Broker Dashboard to track revenue, commissions, and renewals. Using our Broker Dashboard puts all your clients’ information in one place, under one password, in an easy-to-use app that you can access from your office or on-the-go from any mobile device.

Right now, only 2 percent of all businesses in New Jersey write their TDB policies through a private carrier.

The market is wide open.

The opportunity is there.

Start the conversation by letting your customers know about the new NJ state disability maximum benefit 2019. Then show them what they have to gain with private TDB coverage, because the advantages go far beyond the amount of money claimants receive.

Want more tools to help you sell NJ TDB? Check out our new NJ TDB Resource Center here.


DBL Center Acquires DBL Advantage, Starts the New Year with Major Growth Initiative

Top New York insurance wholesaler announces the acquisition of DBL Advantage Etc. Ltd

Effectively immediately on January 1, 2019, the DBL Center Ltd. has acquired DBL Advantage Etc. Ltd., a New York-based licensed General Agency specializing in NYS DBL, Paid Family Leave,  NJ TDB and group ancillary benefits. The synergy between the two company’s insurance lines, as well as the mutual carriers and industry partnerships developed by both firms over several decades, made the acquisition the next logical step in The DBL Center’s growth.

DBL Center: Celebrating a Rich History and a Strong Future

The DBL Center was founded in 1976 by David J. Cohen. Now under the guidance and leadership of Michael Cohen, the company is one of the largest insurance wholesalers in the New York Tri-state area. In 2014, The DBL Center Ltd. acquired Combined DBL, a Long Island-based General Agency, to expand its ability to serve customers in the NJ TDB, NYS DBL, and group ancillary markets.

In addition to these noteworthy acquisitions, the past decade has brought unprecedented growth, market expansion, and new technologies to the company. The acquisition of DBL Advantage is a testament to, and a direct result of, DBL Center’s rapid expansion and market position.

How the Acquisition Will Affect NJ TDB and NYS DBL Brokers

Expanding The DBL Center’s market share and increasing the general agency’s leverage in the marketplace, the acquisition provides outstanding benefits to new and existing DBL Center brokers. The acquisition promises to strengthen the position of The DBL Center and its brokers in the statutory disability, PFL, NJTDB, and group ancillary markets, resulting in lower rates, higher commissions, and more options.

“The combination of premium between DBL Advantage and the DBL Center enables the DBL Center to provide brokers with higher compensation on new DBL and PFL business placed after the first of the year and moving on through 2019,” says DBL Center President and CEO Michael Cohen.

“New brokers that came to us as part of the acquisition will enjoy additional office staff to answer all their questions and to provide the full, white-glove back-office support DBL Center is known for,” Cohen says. “With generous commissions, multi-line discounts, and the most advanced technology available to P&C brokers, we have no doubt that our newest customers will view the acquisition as a favorable transition, and we welcome DBL Advantage brokers to the DBL Center family.”

White-Glove Support and the Latest Technology

The DBL Center will provide new customers with a designated account manager for over- and under-50 employee cases, as well as sales representatives to assist in the cross-selling of ancillary product lines.

“Working with DBL Center, brokers will discover multiple ways to round out their book of business and earn additional compensation through the sale of Group Life / AD&D coverage, group long-term disability, dental, and vision benefits,” Cohen says.

In addition, new brokers will gain free access to the DBL Center’s proprietary Broker Dashboard, a cloud-based app that enables brokers to track accounts and renewals, receive monthly reports on cancellations and reinstatements, and receive an earnings report on a monthly, quarterly, and annual basis.

With the white-glove service brokers have come to expect for more than 40 years, along with the latest technology and innovative solutions to the challenges today’s NJ TDB and NYS DBL brokers face, DBL Center is ready to move to the next phase of growth.

“To say we are excited about the future is an understatement,” Cohen says. “As the NYS DBL and NJ TDB markets change and evolve, The DBL Center keeps pace, providing our brokers with all the support they need to thrive.”

 


5 Reasons to Buy Private TDB Coverage in NJ

Private TDB coverage in New Jersey delivers faster payouts, better service, cost savings, and easy commissions

Did you know 85% of business owners buy TDB in NJ (temporary disability benefits) through the state?

If private TDB coverage is so much better, why aren’t more business owners and HR directors switching?

Most New Jersey business owners simply don’t know there’s a better way.

That’s where DBL Center brokers come in.

You can gain your customers’ trust, increase business referrals, and earn commission on a mandatory insurance product by showing your customers the benefits of private TDB coverage.

1. Employees enjoy faster payouts with private TDB.
When your customers make a TDB claim through a private carrier, they can start receiving a check in as little as 7 days. Employees who make claims through the state insurance fund might wait months for their first check.

In addition, employees can choose to receive a debit card or check and even determine the schedule of their disability income, so they can stick to the budget they’ve established when they were working.

2. Get your questions answered faster with extended service hours.

Have a question about a NJ TDB claim after normal office hours? The Department of Labor Temporary Disability Insurance call center is only open from 8 am to 5:30 pm, Monday and Tuesday, and from 8:30 to 4:30 Wednesday through Friday.

Most insurance carriers have extended hours, and many even offer the ability to check claim status online 24/7. Plus, DBL Center brokers will be able to reach out to the DBL Center directly, 24/7, through the broker dashboard once it is launched this fall. There is no reason for anyone to stay awake wondering about the status of their disability claim.

3. Work with carriers who care.

We’ve all done business with state and federal agencies. The DMV. The state IRS. The post office. There is a reason Amazon uses its own delivery company. Government services typically involve a lower quality of service, slower response time, and lots of red tape.

When you work with top carriers to buy private TDB coverage, you can deliver a higher level of service than your customers would receive anywhere else.

You’ll gain access to the DBL Center’s back office staff to answer your customers’ questions, help process claims, and ensure your customers are getting the best rates.

4. Lock in low rates.
Will the state of New Jersey increase TDB rates? Every November, the insurance industry plays a guessing game before the NJSIF announces its rates for the coming year. If rates go up, you’ll be scrambling to write your customers’ policies with private carriers for more competitive pricing.

Why not beat the rush and help them switch to a private carrier now? You may even be able to lock in low rates for two to three years.

You can only switch to privatize TDB coverage on the first day of every quarter. Now is the time to start thinking about helping your customers make the switch on October 1.

5. Save money by bundling TDB with ancillary benefits.
From small businesses to large corporations, most companies want to save money. Even if the NJSIF premiums remain the same next year, your customers could still save money with private TDB coverage.

Most TDB carriers also provide voluntary ancillary benefits packages, including vision, dental, and group life coverage.

That’s something your customers won’t find with the state insurance fund. And if you bundle ancillary benefits with a TDB package, your clients can save money all around, while providing employees with an enticing benefits package that may help retention rates in their company.

Let The DBL Center Help Your Customers Switch
Making the switch to private TDB coverage isn’t easy. But it’s worth it.

When you work with DBL Center, we will shop around for you to find the best terms and service for your customers. Once you’ve made the sale, The DBL Center will provide your customers with the paperwork they need, walk you both through the process, and make sure the switch to private TDB coverage happens seamlessly. Your customers will feel good about the money they saved and the service they are receiving.

Learn more about how New Jersey insurance brokers are using private TDB coverage to increase their bottom line. Then reach out to your friends at The DBL Center to get started.


What Can Employees Do When Temporary Disability Runs Out?

Business owners in New York, New Jersey, and Hawaii must provide temporary disability payments for up to 26 weeks to employees who are ill, injured, or had a baby. But 26 weeks is not a long time for a person with a significant injury or a life-changing illness. Where can employees turn when temporary disability (DBL coverage in New York, TDB in New Jersey, and TDI in Hawaii) runs out?

Social Security Disability Insurance (SSDI)

Some people with an illness or injury may try to apply for Social Security benefits. However, to qualify for Social Security / Disability benefits, you must be unable to work for at least one year, or have an illness that will lead to death. The time between 26 weeks and a year is a long span to live without any income if you are unable to work. That’s where income replacement insurance – purchased privately or through the employer – comes in.

One of The DBL Center’s insurance broker partners in your area can assist with these types of coverage.

Why Healthy Individuals Need Disability Coverage

The Social Security Administration estimates that a 20-year-old employee faces a three in ten chance of becoming disabled before age 65. Other reports say one in four workers becomes disabled during their working life. These odds increase for heavy smokers, people who are overweight, or those who have a chronic condition such as heart disease,diabetes, or high blood pressure.

Yet, only 45 percent of millennial workers have long-term disability insuranceApril-Post-1-TD-Runs-Out, according to The Hartford Financial Service Group. More than 20 percent of millennials said they would need help from family or friends or move back in with their parents if they were unable to work due to illness or injury, while another 20 percent would have to rely on credit cards or borrowing against their 401K retirement account.

While employees don’t want to consider being one of the 25 to 30 percent of people who become disabled, it’s a reality. And most disabilities are caused by illness, not injury. Knowing they are protected, whether through private income replacement insurance or employer-funded temporary disability benefits offers peace-of-mind and greater financial security.

Extended Disability Coverage through the Employer

As the person in charge of the purse strings, you may wonder why you’d want to invest in additional insurance coverage that will pay out to your employees but not offer your company any real benefit?

The cost to the company is actually very small, especially if you purchase coverage as part of extended disability benefits. Extended disability coverage not only increases the length of time employees may be covered, but can provide more than the state maximum in benefits. Employers may collect up to 75 percent of their salary – enough to live on, in most cases –through enhanced disability benefits.

This benefits package may entice help entice star talent, but, more importantly, it can help you retain high-quality employees after they bounce back from an illness or injury. If your company took care of them in their time of need, they will return to work with a degree of loyalty. In fact, due to the strain financial difficulties place on person’s health, having disability coverage to provide for themselves and their family could, in fact, help make a return to work after injury or illness possible.

Private Long-Term Disability (LTD) Insurance

For self-employed contractors or individuals whose companies don’t provide extended disability coverage, insurance brokers offer long-term disability or income replacement insurance. Since the premiums on this insurance are paid out-of-pocket, the disability income is not taxable, so claimants receive their full benefits when they need the money most.

The Choice Is Yours

As the business owner or person in charge of HR decisions for the company, the decision to provide extended or enhanced disability coverage lies in your hands. Weigh cost factors with the intangible benefits of employee recruiting and retention.

Keep in mind that disability coverage doesn’t have to be “all-or-nothing.” You can give your employees the option to buy into a policy with lower premiums than they would get if they purchased individual disabilityon their own. Or you can split the cost with them. Since this is a pre-tax benefit, some employees may enjoy the tax benefits, too, although it means they will have to pay taxes on their disability income if they ever make a claim.

However you choose to structure the offerings, consider making extended disability coverage part of your employee benefits package. Contact your insurance broker to help you explore your options.