As a broker, you know that disability insurance can be one of the most challenging benefits to explain and manage. Your SMB clients often have trouble understanding the difference between Short-Term Disability (STD) and Long-Term Disability (LTD) plans and why they should offer both. That is before considering the complications associated with choosing a carrier, maintaining compliance requirements and processing claims.
PrestigePEO supports brokers by simplifying communication, managing administrative tasks and helping deliver effective benefits strategies to SMB clients.
This article explains:
- The disability insurance opportunity for brokers and SMBs
- Benefits of STD and LTD plans for businesses
- PrestigePEO’s enrollment and compliance support
- How PrestigePEO improves administration and carrier management
Disability Plans Explained
It’s helpful to take a step back and make sure you understand what each type of disability plan offers.
Short-Term Disability
This benefit helps employees recover a portion of their income when they’re unable to work due to illness or injury. STD typically replaces 50% to 80% of an employee’s regular wages for a limited period while they recover.
Key things to understand:
- Covers non-work-related illnesses or injuries such as surgeries, accidents, or childbirth
- Short-term benefits kick in between 7-14 days after filing
- Benefits can last a few weeks up to six months
- Does not cover work-related injuries or workers’ compensation
Long-Term Disability
Most long-term plans replace 50% to 70% of an employee‘s income when they’re unable to work due to serious injury or illness.
Key things to understand:
- Kicks in after STD benefits have been exhausted (90-180 days)
- Can last for a predetermined period or even until retirement
Does not cover work-related injuries/illness or workers’ compensation
Why STD and LTD Matter for Brokers
Short-term and long-term disability plans are often overlooked, but they serve an important role in income protection. For brokers, they also open the door to offer valuable coverage that clients may already have.
Only 35%- 43% of private-sector employees have disability insurance coverage. That means more than half of the workforce could face financial hardship in the event of a serious illness or injury.
Offering STD and LTD is a way for SMBs to stand out. It also presents an enormous opportunity for brokers who can provide disability coverage, delivering additional value that protects lives and livelihoods.
How Disability Plans Add Value
Disability plans help small businesses compete with larger corporations by giving them access to valuable benefits that are typically hard to secure on their own. Here is how disability coverage adds real value:
- Income protection for employees + stability for employers – Covers lost wages during time off while easing the burden on HR and leadership.
- Levels the playing field for SMBs – Helps smaller businesses offer competitive benefits that rival big corporations
- Protects against financial disruption – Minimizes the impact of long-term employee absences on business operations.
Managing Disability Benefits
Disability insurance is complex to manage for several reasons:
- Variance in benefits – Each insurance provider has its own rules, definitions and limitations. Comparing quotes can quickly become overwhelming.
- Regulatory and compliance issues – SMBs and brokers must navigate complicated state and federal disability mandates. This makes tracking and distributing benefits challenging, especially for companies with remote employees in different states.
- Administrative burdens – Brokers are often tasked with managing quotes, coordinating enrollment, resolving claims disputes and other related tasks.
- Client confusion – It can be challenging to explain specific terms relating to disability insurance like “own occupation,” “elimination period,” or “partial disability” if you’re not an expert.
How PrestigePEO Supports Insurance Brokers
We understand that brokers are seeking more than just a carrier. You need a partner who helps make benefits easier to communicate and manage for you and your clients.
Here is how we simplify insurance planning:
- Disability insurance education
- Seamless plan administration
- Federal and state compliance support
- Bundled benefit offerings (health, vision, dental, voluntary) for better ROI
- Dedicated broker partnerships
- Retirement benefits (401(k), IRA)
PrestigePEO empowers you with the tools, resources and support needed to expand your portfolio, retain clients and win new business.
More Benefits, More Ways to Benefit Your Clients
Our comprehensive portfolio allows you to go beyond the basics for your clients. As a PEO, we help SMBs access the same Fortune 500-level benefits typically reserved for large organizations at competitive rates.
Along with STD and LTD plans, SMBs can also choose:
- Health insurance
- Dental and vision coverage
- Supplementary benefits (telemedicine, pet insurance and travel discounts, etc.)
- Retirement plan options (401(K), IRA, etc.)
Benefits for Brokers
Managing multiple vendors, quoting inconsistencies and enrollment chaos are the top pain points brokers face with disability insurance.
At PrestigePEO, we help brokers cut through the complexity of disability insurance by supporting them at every stage:
- Faster quoting and planning support – Get accurate proposals out the door sooner, so you can stay competitive and responsive to clients’ needs.
- Concierge-level service – You and your clients receive hands-on guidance, from plan design to onboarding support.
- Unified quoting and enrollment – Say goodbye to juggling vendors. We centralized processes to reduce admin headaches.
- All benefits are in one portal – Clients gain access to a single dashboard for managing disability, health and voluntary benefits, all in one place.
You’ll save hours during implementation and have clear visibility into plan options and participation.
Benefits for Your Clients
With PrestigePEO managing the administrative and compliance-heavy aspects of disability benefits, your SMB accounts gain several competitive advantages:
- Reduced administrative overhead
- Better communication with employees
The result? Fewer HR headaches, more confident employees and a more polished benefits experience, all while helping your clients stand out as competitive, caring employers.
Simplify Insurance Planning with PrestigePEO
At PrestigePEO, we’re committed to offering reliable disability insurance broker support to deliver and manage short-term and long-term disability plans for brokers, employers and employees alike.
You’ll gain:
- A trusted partner to help you navigate STD and LTD complexities
- Administrative assistance for you and your clients
- Compliance management, even across multiple states
- An improved benefits experience that differentiates your brokerage
Together, we can turn disability insurance into a differentiator that helps to grow your business and keep your clients satisfied. Connect with us today to learn how we can help you deliver smarter, more effective STD and LTD strategies for your clients.
