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All You Ever Wanted to Know About Insurance

Group vs. Individual Disability

What Is Disability Insurance & Why Do I need It?

What is Disability Insurance? Disability Insurance is a form of insurance which provides benefits in the form of income (usually weekly or monthly) to employees disabled by sickness or accident not related to employment.

Why do I need Disability Insurance? A disability is unpredictable and can happen to anyone, at any age. You need disability insurance to protect you and your family in the event something happens to you and you are unable to work. According to SSA, 1 in 4 young adults are becoming disabled before reaching retirement age! Furthermore, Social Security Disability Benefits are difficult to qualify for and the monthly benefit paid is nominal. 


Individual Disability Insurance

Individual disability Insurance can be your only disability insurance policy (if your employer does not offer a group policy) or can act as supplemental disability insurance, which fills in the gap between your employer-sponsored plan and the amount you need to survive financially if you become disabled. It is important to think long-term and consider the potential devastating effects of losing your income. 

Additionally, individual disability plans are portable, meaning you can keep the policy even when you change jobs. When shopping for an individual policy, a there are a few things to pay special attention to, waiting period, own occupation, benefit period, waiver of premium, and residual disability.  


Group Disability Insurance 

Group Disability Insurance protects your employees from the risk of losing financial stability in the event of an accident, injury or illness. Many employers think workers compensation would cover a disability, but that is only true if the employee is hurt on the job. Minimal underwriting requirements apply to group policies.

Why should I offer Group Disability Insurance as an employer? Not only does Group Disability Insurance protect your employees, but it also helps your business in attracting and retaining talent at your organization. 


Short & Long-Term Coverage Options

Short-Term Group Disability Insurance provides weekly benefits for employees who are totally or partially disabled by a covered injury or illness. Short term disability policies usually pay out benefits between three to six months.
Long-Term Group Disability Insurance usually runs for several years or even until retirement age and protects your employee's from the risk of losing financial stability in the event of an injury or illness. 


If you would like to know more about disability insurance, please let us know. We are happy to chat through your options. If anything, we are happy to review your current insurance portfolio to make sure you are adequately insured.