Types of Group Disability Insurance To Protect Your Income

The loss of income due to a disability can be a major setback. While you are out of a regular paycheck, you are also likely facing major medical expenses. Here are a few ways that group disability plans can be a viable solution to the problem.

Benefits of Group Plans

Because group plans spread risk over a larger pool of individuals, premiums tend to be lower and underwriting guidelines more relaxed when compared to individual plans. That can make them an attractive component of a benefits package.

Short-Term Coverage

Accidents and illnesses happen all the time. Unfortunately, they often extend beyond standard paid sick time. In those situations, short-term disability can help replace a portion of the income lost.  These will usually pay for a set period of time, such as three months or a year, and payments are often based on an employee’s income.

Long-Term Coverage

Maybe you got hurt and will never be able to return to work. Long-term disability plans are an excellent option in instances where an illness or injury will keep you out of work for an extended period of time. They can provide income payments for several years, with some even providing a lifetime benefit. There is often a waiting period before this type of group coverage becomes effective for employees. In many cases, long-term coverage kicks in when short-term coverage is exhausted.

Disability insurance is an attractive part of many befits packages. Depending on the policy you choose, it can provide supplemental income for short- or long-term disabilities.

Frank