Many wage earners do not have the cash reserves to survive the onset of disability. For average workers who live pay check to pay check, disability insurance provides employees financial security.

Self-funded plans have several advantages over insured disability plans. One of the main advantages is the flexibility of the Plan design. By creating an ERISA program, you can design the plan to meet your needs.

Insured plans are state regulated and must conform to standard existing Plan designs. Employers can experience greater cash flow savings through flexible funding options and control of short-term cash flow. A self-funded plan also allows employers to earn investment returns on funds set aside to cover annual claims. Funds spent on insurance premiums usually have no investment return.

Insurance is not risk free -- increased costs are eventually passed on through premium taxes or additional overhead built into premiums. Administration costs are generally lower in self-funded plans because you pay actual fees as you go rather than an estimated fee based on the potential duration.

Self-funding benefits employers in many ways:

• Control of Plan design;
• Administration tailored to the employer's needs;
• Cash flow benefits;
• Return on investment for reserves;
• Cost & utilization controls;
• Effective claim processing;
• Lower Cost of Operation;
• Elimination of most premium tax;
• Carrier profit margin & risk charge eliminated;
• Mandatory benefits avoided (State mandates can be avoided as self-funded programs are governed by ERISA); and
• Risk management effectiveness.

Click here to download a copy of the Disability Claim Form