Group Disability Insurance
A group disability insurance policy covers a group of individuals
who are affiliated in some way, either through an employer,
trade association, or other organization. Group disability covers
the loss of compensation due to accident or sickness and is
generally less expensive than individual disability coverage,
however, benefits are limited to a stated length of time and the
maximum monthly income benefit is usually no more than 50 to
60 percent of earnings.
Some employers drudge over offering Group Disability
Insurance. However there are many advantages of having such
a program in place. Everyone need disability protection, your
employees are no different.
Group Disability Insurance offers you and your employees a
paycheck after an accident or sickness. The waiting period
involving this product, usually can be as short as one day for
accident, and eight days for sickness. The cost of group
disability insurance is usually cheaper than buying it on an
individual basis. Yet this usually depends on the size of the
group. The more employees you have, the more premium your
group disability insurance company can collect, and therefore
less chance of adverse selection.
People often put off buying an individual disability policy. Either
they believe they cannot get injured or sick, or they believe
they cannot afford it. Some think they automatically qualify for
disability benefits under Social Security. This is not the case.
Many times, individuals never qualify for any Social Security for
|Group Disability Insurance