Group Disability Insurance

The Employees of an organization need to be assured that their income will be protected by the employer in the event of any misfortune like accident or illness.

Group disability insurance is a facility offered by which the employer can ensure that employees working in his organization receives a monthly income if illness or accident prevents that employee from working.

Generally the benefits are paid to a certain length of time and the amount would be approximately around 50 to 60 % of his earnings prior to disability or a fixed dollar amount whichever is less.

The advantage of the group disability insurance is that it gives the employer a sense of satisfaction that they are able to protect the income of the employee even though he has been disabled. This in turn increases the confidence of the employee on the employer and he appreciates that the organization has a plan to reduce the financial discomfort of the employee.

Types of Group Disability Insurance

Group Short Term Disability

Group Short Term Disability is a policy that is available for employees who are not able to work for a short time due to illness or accident. The term can vary from a few days up to 26 weeks. It is also called as Weekly Indemnity as it is designed for employees who are disabled for a short period of time.

Group Long Term Disability

Group Long Term Disability is an insurance which can benefit employees who are disabled for a long period of time. The benefits reach the employee till he become 65 years.

This policy has a waiting period of a 30 days before it takes effect. In general, a Group Long Term Disability plan is more cost effective when compared to employees having individual coverage.

Advantages

The advantages of Group disability insurance are that it is cost-effective. It creates a bond between the employer and the employee and helps the organization in retaining quality employees. The employees and their family members can have more peace of mind when they know that they are protected by a very effective policy.

Get Wiser

Employees assume that they are being covered if they cannot work, since a few dollars are being deducted from their pay every time. In reality, the employee realizes that the benefit that reaches him is not sufficient to meet his needs.

The employee can contemplate taking a supplemental disability insurance which helps him to fill the gaps created by the disability insurance provided by the employer.

The supplemental disability insurance can reduce the risk of loss of income by extending the income coverage to 100% by paying a small premium of about $60.

Another point to note is that the group disability coverage ends when the employee leaves the employer whereas the supplemental coverage would still continue regardless of the organization that you work for.