When an unexpected disability occurs, it can be tough to make ends meet when you’re not able to work. If your employees have disability insurance, they can use the income protection to help them meet daily expenses. But, what if they had larger financial obligations, such as loans? Now that’s a struggle. Having to worry about additional finances can become a major obstacle for your employees and could ultimately impact your business.
Guardian’s Loan Payment Protection option, available on our Long Term Disability plans, helps to further ease financial burdens by helping disabled employees pay outstanding loans for education, automobiles, mortgages, and home equity.
Did you know? The average U.S. household consumer debt is:1
- Student Loan → $48,172
- Auto Loan → $27,141
- Mortgage → $168,614
How it works:
- Loan Payment Protection is an optional feature that pays an additional monthly benefit to a permanently and totally disabled employee for eligible outstanding loans.
- This monthly benefit is paid over five years, and is in addition to an employee’s disability benefits.
- Employers can offer the option as part of their base disability plan or as an employee buy-up, in loan payment amounts of $10K, $25K, $50K or $100K.
Managing a disability is never easy. This valuable plan option can help relieve some of the financial burdens of a severe disability, allowing the person to focus on what’s most important: health and recovery.
For more information, please contact your Guardian broker.