Group Disability Insurance Bloomfield Hills Employees Can Lean On
When an employee gets sick or hurt and cannot work, the paychecks stop fast. Their rent, car payment and grocery bills do not. Michigan has no state disability program. For most illnesses and injuries, a worker’s pay simply stops unless the employer offers coverage. Group disability insurance Bloomfield Hills companies offer fills that gap.
What We Cover, Section by Section
Disability Insurance
Disability insurance pays part of a person’s pay when an illness or injury keeps them from working. There are two main kinds.
Accident Insurance
Accident insurance pays cash to the employee after a covered injury, like a broken bone, a burn or an emergency room visit.
Leave & Absence Management
Leave is where disability coverage, federal law and Michigan law meet. It is also where HR teams get tripped up. Many employers hand leave tracking to a leave administrator. Check the monthly shortfall with our free disability income gap calculator.
We are CFH Insurance Consultants, an independent employee benefits consulting firm on Woodward Avenue. We have been in business since 2007, and no carrier owns us. We help employers in Bloomfield Hills, Troy, Southfield, Auburn Hills and across the whole state of Michigan protect their team’s income. Try our free short-term disability benefit calculator to run the numbers for your own group.
Disability Insurance
Disability insurance pays part of a person’s pay when an illness or injury keeps them from working. There are two main kinds.
- Short-term disability pays for a few weeks or months. It often covers surgery, a serious illness or recovery after childbirth.
- Long-term disability starts when short-term disability ends. It can pay for years if the person still cannot work.
Both often replace around 60% of pay, up to a monthly limit. The elimination period is the waiting time before benefits start. A shorter wait costs more.
Plan wording matters. An “own occupation” plan pays if a person cannot do their own job. An “any occupation” plan pays only if they cannot do any job they are suited for. Many long-term plans switch from one to the other after a set time. Pre-existing condition limits can also delay coverage for new members.
Who pays the premium changes the tax. If the employer pays, the benefit the employee gets is usually taxable. If the employee pays with after-tax money, the benefit is usually tax-free. Some employers pay for long-term coverage and offer short-term coverage as a voluntary choice.
As your group disability insurance Bloomfield Hills broker, we compare carriers, read the contract definitions and help keep you ERISA compliant. Open enrollment is in the fall, and most January 1 renewals arrive in October and November. That is the right time to add or change coverage. Try our free long-term disability premium calculator to run the numbers for your own group.
Accident Insurance
Accident insurance pays cash to the employee after a covered injury, like a broken bone, a burn or an emergency room visit. The money goes to the employee, not the doctor. They can use it for a deductible, a ride to therapy or groceries. Try our free employee premium percent of pay calculator to run the numbers for your own group.
It is usually voluntary, and employees pay through payroll. It pairs well with a high-deductible health plan, where one injury can mean a large bill. Our free paid family leave cost calculator turns this into dollars for your plan.
Accident insurance is not a replacement for disability coverage. It pays set amounts for set events. It does not replace a share of lost pay. It works best as a low-cost add-on to the group disability insurance Bloomfield Hills employers already offer. We help you explain the difference so employees choose well.
Leave & Absence Management
Leave is where disability coverage, federal law and Michigan law meet. It is also where HR teams get tripped up.
- FMLA, the Family and Medical Leave Act, applies to employers with 50 or more employees within 75 miles. It gives eligible employees job-protected leave. FMLA leave itself is unpaid.
- Michigan’s Earned Sick Time Act has been in effect since February 2025. Your sick time policy needs to match it.
- Short-term disability often pays during the same weeks an employee is on FMLA leave. The dates and the paperwork have to line up.
Many employers hand leave tracking to a leave administrator. That is a company that takes leave requests, tracks the dates and sends the required notices. We are not a TPA, or third-party administrator, and we do not run leave ourselves. We find, set up and oversee the administrator, and we hold it to its contract. We also make sure your disability carrier and your leave administrator share what they need to.
More on Leave & Absence Management →
Who’s the best group disability insurance broker near me?
When you shop for group disability insurance Bloomfield Hills businesses can count on, look for a broker who reads the contract, not just the price. Two plans with the same premium can pay very differently once you compare definitions and waiting periods.
Look for independence. A broker that no carrier owns can quote several carriers and tell you plainly how they compare. And look for a team. For proper coverage of an account we work in teams of 5: an account executive, an account manager, a plan analyst, customer service and IT. Disability claims can last months, so you need more than one person who knows your file.
Our office is at 41000 Woodward Avenue, Suite 350 East, close to Birmingham, Royal Oak and Pontiac. We are a member of the Birmingham Bloomfield Chamber.
What do I do if an employee needs time off for a serious illness?
Take it one step at a time.
- Check FMLA. If you have 50 or more employees within 75 miles, the employee may qualify. Send the required notices on time.
- Start the disability claim. The employee files with the carrier. You fill out the employer part, including pay and job duties.
- Check earned sick time. Under Michigan’s Earned Sick Time Act, the employee may be able to use paid sick time.
- Line up the dates. Keep FMLA, sick time and disability dates in one place.
- Get advice before job decisions. Our clients get access to ERISA attorneys and CPAs through the firm for hard cases.
If you do not have group disability insurance Bloomfield Hills employees can use yet, call us before the next renewal. New coverage usually does not pay for someone who is already out on leave.
Talk to Us About Group Disability Insurance Bloomfield Hills Employers Can Trust
Send us your renewal or book a 30-minute call. We will review your disability, accident and leave setup and tell you plainly what we see. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853. We work with employers in Oakland County, Metro Detroit and across Michigan.
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Short-Term and Long-Term Disability Do Different Jobs
Most employers buy both, and they work best when they are designed as one sequence rather than two separate products.
Short-Term Disability
Pays part of an employee’s pay for a limited period after a short waiting period. It covers illness, injury and, in general terms, recovery from pregnancy and childbirth. The length of the benefit is a plan choice. Detail is in our short-term disability guide.
Long-Term Disability
Starts after a longer waiting period and is meant for conditions that keep someone out of work for months or longer. How long it pays depends on the plan design. Detail is in our long-term disability guide.
One Sequence
The short-term benefit period and the long-term waiting period should meet, with no gap between them and no wasted overlap. Lining them up is the first design decision. See disability plan coordination.
Different Definitions
Each plan defines disability in its own contract, and the long-term definition often narrows after an initial period. A claim can qualify under one plan and not the other. Read the definition in each contract, including what changes after the early months, before you compare plans or explain them to employees.
Different Cost Pattern
Short claims tend to be more frequent and long claims less frequent but much larger, which affects how each product is priced and why plan design choices matter. Pricing comes from the carrier, not from us. Ask each carrier to explain how your group’s experience and plan design shape its price.
Work-Related Claims
Disability plans are generally designed for conditions that are not work related, and work-related claims are usually handled outside the plan. Ask the carrier and counsel how a work-related claim would be treated alongside the plan, including any offsets, so employees understand which applies to them.
From the First Missed Day to a Long-Term Claim
A typical sequence for an employee who becomes ill or injured. Every length below is a plan design choice, so read your own documents.
Day One: Sick Time or PTO
The employee uses employer sick time, paid time off or nothing at all. Michigan’s Earned Sick Time Act sets a minimum for paid sick time, but it is a short bridge, not income replacement for a long absence. Check your sick time and PTO policies for how they coordinate with disability benefits.
The Short-Term Waiting Period
Short-term plans start paying after an elimination period set in the contract. Some plans use different waiting periods for accidents and illnesses. Ask the carrier how each is counted. Compare the waiting period with your sick time and PTO policies, so employees are not left without pay between one and the other.
Short-Term Benefits
Once the waiting period ends and the carrier approves the claim, benefits are paid as a percentage of pay up to a maximum, for as long as the plan’s benefit period allows. Review the benefit percentage, maximum and benefit period together, since they decide how much income an employee actually keeps.
The Long-Term Waiting Period
The long-term elimination period is usually set so it runs out when short-term benefits end. If it is longer than the short-term benefit period, the employee has a gap with no disability income. Check how the two periods line up in your own plans, and ask the carrier or your adviser to point out any gap.
Long-Term Benefits
If the employee still meets the definition of disability, long-term benefits begin and are paid monthly up to a maximum, reduced by offsets such as Social Security disability benefits. Ask the carrier for a written example of how offsets would reduce a typical benefit, so employees know what to expect.
Return or Transition
The employee may return to work, return part-time under a residual provision, move to a different occupation after the definition changes, or reach the end of the maximum benefit period. Ask the carrier how a return to work is handled, including partial returns, so the plan’s rules are clear to employees before they need them.
Who Pays the Premium Decides How the Benefit Is Taxed
The tax result follows how the premium was taxed. We are not tax advisers, so confirm any treatment with your tax professional. IRS Publication 525 and Publication 15-A describe the rules.
Employer Pays, Premium Not Taxed
When the employer pays the premium and it is not included in the employee’s wages, the disability benefit is generally taxable income to the employee. Because taxation turns on how the premium is paid, ask your tax adviser how this applies to your plan before you explain it to employees.
Employee Pays After Tax
When the employee pays the premium with after-tax dollars, the benefit is generally not taxable. IRS Publication 525 says benefits from a policy are not taxable when the employee paid the premiums.
Employee Pays Through a Cafeteria Plan
Premiums paid pre-tax through a cafeteria plan are generally treated like employer-paid premiums for this purpose, so the benefit is generally taxable. Your payroll provider and tax adviser can confirm how your plan’s deductions are set up, so employees get accurate information.
Taxed Premium Election
Some carriers describe a method where the employer pays the premium and reports it as taxable wages, sometimes called a gross-up. The employee has then paid tax on the premium and the benefit is generally not taxable. Ask your carrier and payroll provider how it works.
Split Funding
If the employer and employee share the cost, the benefit can be partly taxable. The calculation is technical, so have your tax adviser confirm it. Keep a record of each side’s share of the premium, since that split is what your tax adviser will need.
Payroll Reporting
IRS Publication 15-A treats disability benefits as sick pay, which is generally subject to Social Security and Medicare taxes except for the part attributable to after-tax employee contributions. Who withholds depends on whether the insurer acts as the employer’s agent.
The Plan Design Choices That Move Price
We do not guarantee carrier pricing. These are the levers that carriers rate on, and each is a decision for the employer.
Benefit Percentage and Maximum
The share of pay replaced and the weekly or monthly cap are both plan choices. A cap that is low relative to pay leaves higher earners with a smaller share of income replaced. Compare the cap against the pay of the people the plan is meant to protect, not only the average employee.
Waiting Periods
A longer elimination period generally lowers premium but leaves employees uncovered longer. It should be set against how much sick time and PTO your staff actually have. Check this against how much paid leave your own employees actually have, since policies differ between employers.
Benefit Duration
A shorter maximum benefit period costs less. For long-term plans, the duration often depends on the age when disability begins. Weigh the premium savings against how long employees would be left without income if a disability runs long, and ask your adviser to show how the duration options compare.
Definition of Disability
A stricter definition, or one that moves from own occupation to any occupation sooner, changes the risk the carrier takes on and so changes the rate. Compare the definitions across quotes side by side, since a lower price can reflect a tighter definition.
Eligibility and Classes
Plans can set different benefits for different classes of employees, defined in the contract. Class definitions, hours requirements and waiting periods for new hires all affect cost and fairness. Document the classes clearly and apply them consistently, and ask counsel to review them for fairness and nondiscrimination concerns.
Employer-Paid or Contributory
An employer-paid plan is more expensive to the company but tends to reach everyone. A contributory plan shifts cost to employees, and carriers may set participation requirements. Confirm the minimums with the carrier. Weigh your budget against how many employees you want covered.
Other Income Can Reduce the Check
Disability policies usually list the other income that reduces the benefit. Read that list closely before you compare quotes.
Social Security Disability
The Social Security Administration pays disability benefits only for total disability expected to last at least 12 months or result in death, after a five-month waiting period. Many long-term plans reduce their benefit by the Social Security amount.
Other Income Offsets
Disability policies commonly reduce the monthly benefit by other income the employee receives, such as Social Security, government programs or other wage-replacement benefits. Offset terms differ by policy, so read the wording and ask the carrier how each income source would be treated before you choose a plan.
State and Government Plans
Some states run temporary disability programs and plans commonly offset for them. Michigan does not operate one, but employees who work or live elsewhere may be affected. If you have employees in other states, ask the carrier how the plan coordinates with any local programs, and confirm with counsel.
Other Employer Income
Plans often list sick pay, salary continuation and some retirement or severance income as offsets. Ask exactly which are counted and when. Compare the offset list across quotes, since a similar-looking benefit can pay differently depending on which income sources are counted.
Minimum Benefit
Some plans pay a minimum benefit even when offsets would reduce the check to zero, and some do not. This is a plan feature, so ask about it. Ask for an example of how a typical claim would pay, so you can see the minimum in action.
Repayment of Overpayments
If Social Security benefits are approved later, often with back payments, the carrier may ask the employee to repay the overlap. Ask how the plan handles this and whether it helps employees apply. Tell employees about the possibility before a claim begins so a repayment request is not a surprise.
The Policy Terms That Matter Most
These terms decide whether a claim is approved and how long it lasts. One carrier’s published sample schedule shows how they fit together, but your own contract controls.
Own Occupation and Any Occupation
Own occupation asks whether the employee can do their usual job. Any occupation asks whether they can do any job they are reasonably qualified for. Many long-term plans use the first test for an initial period and then switch to the second. MetLife’s sample schedule uses 24 months.
Pre-Existing Condition Limitation
Limits benefits for conditions the employee was treated for before coverage began. It usually has a look-back period and a period of continuous coverage. MetLife’s sample uses a three-month look-back and 12 months of coverage.
Partial and Residual Disability
Some plans pay a reduced benefit when an employee can work part-time or at reduced earnings. Ask how earnings are measured and how the benefit is calculated. Ask for a worked example using a realistic part-time return, so you can see how the benefit changes as earnings rise.
Mental Health and Substance Use Limits
Many plans cap benefits for mental health conditions, drug addiction or alcoholism at a set period. MetLife’s sample uses 24 months. Confirm the cap and any exceptions in your contract.
Elimination Period
The waiting time before benefits begin, which the employee must usually remain disabled through. MetLife’s sample long-term schedule uses 90 days.
Maximum Benefit Period
How long benefits can be paid. In MetLife’s sample, disability before age 60 pays until age 65, with a longer period for later onset. Your plan may differ.
Plan Features Worth Looking For
These are common features. Not every plan includes them, so ask for each by name.
Waiver of Premium
If included, the employee does not pay premium while receiving long-term benefits. MetLife’s sample schedule includes it. Ask when the waiver starts, what proof is needed, and whether employees must keep paying premium during the elimination period. Get the terms in writing before you sign.
Rehabilitation and Return to Work
Some plans increase the benefit or pay for approved training or programs, and encourage a gradual return. Ask what the plan offers and who coordinates it. Ask whether these services are included in the premium or cost extra, and how employees would be introduced to them.
Survivor Benefit
A payment to a beneficiary if the employee dies while receiving long-term benefits. MetLife’s sample pays a three-month lump sum. Amounts and eligibility vary.
Recurrent Disability
If a disability returns soon after the employee goes back to work, the plan may treat it as a continuation of the same claim and skip a new waiting period. Ask how long that window is. Get the answer in writing, since the length of that window can decide whether a returning employee faces a fresh waiting period.
Continuity of Coverage
When you change carriers, ask whether the new carrier credits time under the old plan for pre-existing condition limits, and how employees already on claim are handled. Ask for the answer in writing before you sign, especially if any employees are currently out on a claim.
Portability or Conversion
Ask whether an employee who leaves can keep any coverage and on what terms. This varies by carrier and plan. Make sure employees hear about those options at termination, not just at enrollment, so a departing employee can decide in time. Put the contact details in your exit paperwork.
Where Michigan and Federal Law Fit Around Disability Plans
We are not legal advisers. These are the general points employers ask about, with the source named so you can confirm them.
No State Disability Program
Michigan does not operate a state temporary disability insurance program. The Social Security Administration’s statistical supplement lists California, New Jersey and Rhode Island among the states that do. Employees in those states are in a different position.
Earned Sick Time Act
Michigan’s Earned Sick Time Act, effective February 21, 2025, requires paid sick time at one hour per 30 hours worked, with annual use capped at 40 hours for small businesses and 72 hours for others, according to Michigan’s Department of Labor and Economic Opportunity.
FMLA Is Leave, Not Pay
The Family and Medical Leave Act gives eligible employees up to 12 workweeks of unpaid, job-protected leave and requires continued group health coverage on the same terms. It does not replace income. Disability benefits do.
Pregnancy and Childbirth
The EEOC says pregnancy-related disabilities must be treated like other temporary disabilities for temporary disability benefits. The Pregnant Workers Fairness Act also requires reasonable accommodation for employers with 15 or more employees.
ERISA and Claims Rights
Employer-sponsored insured disability plans are generally subject to ERISA claim rules under 29 CFR 2560.503-1, which set decision deadlines and appeal rights for disability claims.
Salary Continuation Is Different
An employer that pays regular pay from its own general assets during illness may fall outside ERISA under a Department of Labor regulation. Insured plans are treated differently. Ask counsel about your arrangement. Because the answer depends on how the arrangement is structured, rely on counsel rather than assumptions.
Questions to Put to Every Disability Carrier
We run these questions for clients at renewal and when we go to market. They make quotes comparable.
Ask for the Certificate
Request the full certificate of coverage, not only the summary. Definitions, exclusions and offsets live in the certificate, and it controls if the two differ. Keep the certificate with your plan records and share relevant sections with HR, so questions from employees can be answered from the actual contract.
Ask How Claims Are Decided
Ask who reviews medical evidence, how the carrier handles treating physician opinions, and what happens when an employee disagrees. Ask for the plan’s appeal process in writing. Compare the answers across carriers, since claim handling can differ even when the benefit design looks similar.
Ask About Participation Rules
Ask whether the quote requires minimum participation, whether coverage is guaranteed issue up to a stated amount, and what evidence of insurability applies above it. Compare these rules across quotes, because participation and evidence requirements can change who actually gets covered. Ask the carrier to show where each requirement appears in the proposal.
Ask About Rate Terms
Ask how long rates are held and what triggers a change. Ask what the quote assumes about class structure and employee earnings. If the quote assumes a particular workforce, check that it still fits your employee count, pay levels and any expected changes, because a rate built on different assumptions may move at renewal.
Ask About Leave Integration
Ask how the carrier coordinates with FMLA and state leave, whether it can share claim status with HR, and how it handles intermittent absences. Share the answers with HR so the person who handles leave knows when a disability claim has been opened.
Ask About Employee Support
Ask what help employees get with claim forms, Social Security applications and return-to-work planning, and who they call. Ask whether those services are included in the premium, and get the contact details in writing so you can share them with employees. Also check whether any support extends to family members.
Read the Full Guides
Each guide covers one side of the plan in detail, with the questions to settle before a renewal or a first purchase.
Short-Term Disability Guide
What short-term coverage pays, how waiting periods and benefit periods work, and what it costs an employer. short-term disability guide.
Long-Term Disability Guide
Definitions of disability, offsets, limitations and duration, explained for employers. long-term disability guide.
Disability Plan Coordination
How short-term, long-term, FMLA, sick time and Social Security fit on one calendar. disability plan coordination.
Supplemental Life and Disability
Voluntary options that sit on top of the employer plan. Supplemental life and disability.
When a Claim Is Denied
What the appeal process looks like and how we help. Denied claims and appeals.
Reading Your Plan Documents
Where to find the definitions and offsets that decide a claim. Reading your plan documents.
Disability plans and tax treatment vary by contract. We are not tax or legal advisers, and we do not guarantee carrier pricing or outcomes.
What Employers Ask About Disability Insurance
Short answers to the disability questions that come up most.
What is the difference between short-term and long-term disability?
Short-term disability covers shorter absences, often up to a few months, and long-term disability picks up after that. See our short-term guide and long-term guide.
Are we required to offer disability insurance in Michigan?
No law requires it, and Michigan has no state disability program. Disability coverage is an employer-sponsored benefit you choose to offer.
Who pays for disability coverage?
The employer, the employee, or both can pay. Who pays also decides whether benefits are taxable when a claim is paid, so it is a plan-design choice worth modeling.
What is the difference between own-occupation and any-occupation?
Own-occupation pays when the employee cannot do their own job. Any-occupation pays only when they cannot do any suitable job. Many policies use the first definition for an initial period and then switch, so check the wording.
How much of pay does disability coverage replace?
Plans commonly replace 50 to 70 percent of pay, up to a monthly maximum. The percentage and cap vary by carrier and plan, and some benefits are reduced by other income.
Do pre-existing conditions limit claims?
Many policies exclude conditions treated in a lookback period before coverage began, for a limited time after it starts. The lookback and exclusion periods vary, so compare them.
What is an elimination period?
It is the waiting time before benefits begin. Short-term plans often have a short one, and long-term plans commonly wait 90 to 180 days so the long-term benefit begins when the short-term one ends.
How are disability claims filed and decided?
The employee files with the carrier, supported by medical evidence, and the carrier makes the decision. If a claim is denied, federal rules give employees at least 180 days to appeal.
Where the Rules Come From.
The laws and rules named on this page link to the statute or regulation they come from. This is general information, not legal or tax advice, and rules change, so check the current text.
ERISA (29 U.S.C. Chapter 18)
The federal law that sets reporting, disclosure and fiduciary rules for employer-sponsored benefit plans.
Family and Medical Leave Act (29 U.S.C. Chapter 28)
Job-protected leave and group health coverage continuation for eligible employees.
Cafeteria Plans (26 U.S.C. 125)
The tax code section that lets employees pay certain benefit premiums before tax.
Michigan Earned Sick Time Act (MCL 408.961)
Michigan law on paid sick time accrual, use and notice.
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