Group Disability Insurance
Employers typically offer group disability insurance as part of a company’s benefits package. This coverage pays a percentage of the insured person’s salary if they become ill or suffer an injury and can’t work.
The benefit is designed to provide a percentage of lost income, but it’s subject to income taxes, which reduces the amount of money the insured person receives.
How Does Group Disability Insurance Work?
Employees of a company offering group disability insurance may be able to sign up for this benefit.
Each insurer has criteria the insured person must meet to be eligible for group disability payments. If the insured person is injured or becomes ill and can’t work, they may be eligible to file a claim, depending on whether their condition meets the criteria set forth by the insurer.
Group disability policies don’t typically cover work-related illnesses or injuries.
Short-Term Disability and Long-Term Disability
Employers may offer both short-term and long-term disability benefits. Both coverage types may pay benefits of up to a percentage, usually 60%, of the insured person’s gross salary.
- Short-term disability is designed to cover injuries or illnesses that last six months or less. It often imposes a shorter waiting period of zero to 30 days between when the insured person can no longer work and when the coverage kicks in.
- Long-term disability may begin after a more extended waiting period of 90 days or more. Payments may last between two and 10 years or until the insured person retires.
To learn more about group disability benefits, contact Knapp-Miller-Brown Insurance Services today.