What Is Group Disability Insurance And How to Find The Best Group Disability Insurance Companies
Out of all employee benefits, people are concerned the most about their health insurance, 401(k) plans, and vacation policies. However, disability insurance is another benefit that is not to be underestimated. It’s another benefit that people should, but are not looking for often enough.
So, what is group disability insurance?
Disability insurance is designed to replace a portion of an employee’s income if they cannot work due to injury or illness. It can be a physical injury or a complication of an illness; it’s considered a disability if it prevents you from performing your work tasks for some time.
Being unable to work for an extended time can bring an array of financial uncertainties. Hence, it’s necessary to protect your income at all times, especially when you can’t generate it.
Group disability insurance through work
Many employers cooperate with group disability insurance companies to offer group insurance packages to their employees. Group disability insurance companies state that the most common type of group policies are those provided by employers.
Moreover, according to 2018 reports from the Bureau of Labor Statistics (BLS):
- 42% of employees in the private sector had short term disability insurance plans through their employer, with 85% of the plans being fully paid by the employer.
- 34% of employees in the private sector had long term disability insurance plans through their employer, with 94% of the plans being fully paid by the employer.
- 26% of employees in the state and local government sector had access to short term disability plans, with 87% of the plans being fully paid by the employer.
- 38% of employees in the state and local government sector had access to long term disability insurance, with employers paying the full amount in 83% of the cases.
A positive indicator is that these percentages keep increasing every year, showing that both employers and employees started seeing the benefits of having group disability insurance plans.
Why go for group disability insurance companies?
The main reason people go to group disability insurance companies is that it’s cheaper than getting individual disability insurance. This is because group disability insurance companies dilute their risk by having more people on the insurance policy. They charge for all employees, but the risk of them experiencing a disability is brought down to 25% (1 in 4 people experience a disability during their working life).
Another important factor is that group disability insurance companies will automatically provide coverage to you without any underwriting when you have group insurance and apply for coverage. It facilitates the process and makes it easier for beneficiaries to get the among they need without having to
How to find the best group disability insurance companies
There are a few things you need to keep in mind when you go out looking for the best group disability insurance companies.
- The cost of group disability insurance
- The coverage you will receive
- The elimination period
- How long you’re required to be employed before receiving benefits
- Excluded pre-existing conditions
Group disability insurance doesn’t come with its flaws. Many insurance agents recommend having additional individual disability insurance to cover up the group insurance policies’ holes, so make sure you consider that option as well.
However, group disability insurance is undoubtedly a significant help to have, especially if it’s received by the employer. It minimizes your costs while keeping your income protected if you were to become disabled.
If you need help with any disability insurance, don’t hesitate to reach out to us at any given time. We work with experienced agents that can help you find the best coverage under the most favorable terms tailored for your financial and lifestyle needs.
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