Disability insurance is an excellent option for employees as it helps them get a partial income if they cannot work because of an illness or if they fall sick. Most employers offer group disability insurance to their employees as part of their package. Plans are also available on a contributory or voluntary basis. In such cases, there is little or no cost to the employer.
There are two types of disability insurance. Short term disability insurance is designed to help employees get income immediately after an event. Group long term disability starts six months after the event but can assure an income for years.
Group Long Term Disability – A Must Have For Extended Protection
Group long term disability insurance is a must-have as it can protect your income when you cannot work because of a serious disability. The insurance can also help you get back to work when you have recovered and are ready to resume. This type of insurance can protect your income when you are out of action for a few months or a longer period. It also covers those who are dependent on you.
Group long term disability insurance pays you a percentage of your regular salary. In most cases, the insurance will pay you 50 to 60 percent of your salary. The benefits can last until you recover and become fit enough to resume normal work. In some cases, the benefits are limited to a specific number of years. This will be explicitly stated in the policy by the disability insurance companies.
What Are the Drawbacks?
One of the drawbacks of the policy is the elimination period. Disability companies will not start helping you with the income until you have crossed the elimination period. It is the time span from the diagnosis of the disability to the time when you are qualified to collect the payment. The average span of this insurance is three years. It is important to note that for employer-sponsored coverage, the benefits may be trimmed in some instances. You may lose protection if you change your company. Changes in salary may also affect the payment.
Insurers offering group long term disability may work with employers to create terms and conditions favorable to the employer and the insurers. For instance, they may want you to return to work as quickly as possible. It will save them money if you resume work quickly. A long time away from work means they will have to keep paying you around 50 to 60 percent of your salary every month.
Do You Qualify
You can qualify for group long term disability insurance only if you fulfil certain conditions. The event must affect your mental, physical, or emotional health for at least 12 months. The insurance can vary based on your employment type. For example, if you are working at a desk, you may still be able to work with a serious leg injury. A labor who suffers a similar injury will not be able to work at all.
Make sure you contact a reliable and experienced disability insurance broker to get answers to all your questions about group long term disability insurance.