If your company is in an area that does not have a state disability plan, this is a great benefit to provide for your employees. As with life insurance, if funding the policies is not in your budget, getting a group rate for your employees is still a big help to them. Disability plans never cover pre-existing conditions, even in a group plan. If your area does have a mandatory state disability plan, you can purchase a supplemental plan that will coordinate with the state plan to pay the employee a higher percentage of her wages in the event of a disability.

Disability plans come in short-term or long-term options, although both options may not be available in all states. States that provide disability insurance to employees through tax deductions may result in eligibility for short-term plans.