The Employer Waiver is a rider benefit that can be added to the Income Replacement Benefit or to the Total and Temporary Disability Benefit.
It allows an employer to insure contributions they are making in addition to the basic salary of an employee. These may include contributions towards retirement savings or premiums on risk benefits. In the event of a claim the disability benefit will cover the loss of earnings of the employee (based on the scale selected for the benefit) and the Employer Waiver will cover these additional contributions for the employer (in full).
This means that the employer will not have to pay the insured contributions while the employee is unable to work after the expiry of the waiting period, as these will be covered by the insurer. The employee also has peace of mind that their retirement and risk benefits remain in place while they are on disability.
The Employer Waiver is included in the calculation of the total benefit amount when considering whether medical underwriting is required and is also shown in the disability cover amount on benefit statements.
Please remember to take into account all contributions that the employer is making, including retirement contributions and risk costs, when calling for quotes.
Should you have any further questions in this regard, then please don’t hesitate to get hold of us or your TSA Associate.
Thank you and regards,
The TSA Team
