If you depend on your income to pay the bills, you should seriously consider purchasing personal disability insurance. The insurance companies offer these options so you can still pay your bills by replacing the portion of your income. However, let’s talk about group disability insurance a little.
In general group disability insurance is also a less expensive option than individual disability insurance because the employers offer these group policies. Many employers offer these types of insurance plans as a part of the benefit plans.
Group disability insurance premiums can increase once the company renews the coverage each year. On the other hand, the individual policy’s premium always stays the same in most cases.
The amount of monthly benefit to which you will be entitled to can increase with your salary. In contrast, with the individual policy, the benefit is set when the policy gets issued and will not change unless you add automatic increases.
It’s also essential to understand the term disability regarding both group or individual disability insurance policy. Usually, you would have to be 100% disabled and unable to perform your any job to collect the group policy. Definition of disability varies by product and insurance company. Separate policies pay on a percentage of disability.
Furthermore, many group policies quit paying after some time if you are no longer able to work in your occupation but still can work in another. Individual policies are often broader, and they pay longer if you are disabled in the field that you are still working or are working in another.