Fred C Church

The Social Security Administration estimates that more than 25 percent of the nation's 20-year-olds will become disabled before retirement age, the National Association of Insurance Commissioners (NAIC) notes, yet data from the Census Bureau indicates only 31 percent of private sector workers in the nation have disability coverage.

When examining plan options, employers may wish to consult a certified insurance counselor for advice. Disability benefits can help employees when workers' compensation coverage does not apply, and employers should note that some states require them to provide short-term disability coverage to workers.

Both employers and workers should ensure they understand the way the policy defines disability, since that may vary. According to the NAIC, some will require that an employee be unable to perform his or her current job, while others may only apply when he or she is prevented from performing any work.

Some policies may also allocate limited benefits to partially disabled workers, and plans may cover accidents but not illnesses. The waiting period is also a major factor, determining how soon qualifying employees can receive benefits. Employers should clearly communicate these facts, among others, to workers to avoid misunderstandings.