Group Disability Insurance: Features and Limitations

Group disability insurance benefits are offered by employers. Most employees don’t question these benefits and accept them as they are. First of all, keep in mind that this type of insurance is not a high-quality income protection. But the good news is that group disability insurance companies charge lower premiums in case of group insurance. This allows employers to offer some level of protection to all their employees. Let’s find out more about the features and limitations of these policies.

Group Disability Insurance: Features and Limitations

Another important point to keep in mind is that the benefits of group disability insurance can be off-set with the benefits from Social Security Disability. In addition, group disability insurance companies will ask you for your proof of Social Security Disability.

In short, if you are an employee, you may want to review the group disability insurance benefits. If you don’t understand part of it, you may discuss the matter with an insurance advisor.  These professionals are in touch with many group disability insurance companies. They can help you. Apart from this, if your employers take care of the premiums, know that you may not qualify for 60% coverage because of maximum benefits limitation and taxation of benefits. Hope this helps.

Most group disability insurance companies insure 60% of the employees’ income. Then there is a limit to the maximum monthly benefit, which can be up to a certain amount depending on the insurance contract.


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