4 Advantages of a Private TDI Plan in NJ You Are Probably Not Aware of
Since the New Jersey Temporary Disability Benefits Law has waived the requirement to obtain employees’ consent for a private plan, there is a buzz among employers in NJ about privatizing New Jersey temporary disability insurance benefits. Not only has this amendment made it easier for employers to switch to a private plan but opened gates to new possibilities. Here are 4 advantages of a private TDI plan in NJ you are probably not aware of:
- Savings on Premiums and Better Coverage–By purchasing your TDI plan through a private carrier, you can save as much as 15 to 20% (if not more) on your premiums. Additionally, the benefits and coverage are usually better than—or equal to what is offered by the State Plan.
- Payment Flexibility and Multi-Line Discounts –By opting for a private plan, employers can take advantage of multi-line discounts with vision, dental, long-term disability, and group life insurance. You also get a lot of flexibility in terms of payment options.
- No Need to Stick to One Plan or Carrier–When you have the State TDI plan, you have just one option. Private plans give you the option to switch as many times as you want and get better benefits at a lower price. There can be several reasons why you want to change your private plan or carrier. There might be a change in the class of employees covered by the plan, you are getting better benefits, or simply because there is a change in the eligibility requirement. Whatever the reason may be, you are free to move.
- No Need to Pay the private Plan 4F Deficit Assessment Fee – The assessment fee is essentially an insurance tax to employers charged by the State of NJ and is based on taxable wages. It is generally around 2.7%-4.5% of the total covered payroll annually. When you opt for a private TDI plan, the insurance carrier pays this fee.
Prevent yourself from potential rate hikes, save big on premiums, enjoy better discounts, and increase employer retention. Privatize temporary disability insurance in New Jersey with EZTDB today!