Group Disability Insurance Can Help Your Business Care for Its Employees
Disabilities can have a profound impact on employee’s finances. Not only can disabilities prevent employees from being able to perform their current work, but they also sometimes make it impossible for employees to do other jobs. Employees who suffer from disabilities often suffer a significant drop in income, and they may not be able to earn any income at all. Group disability insurance gives businesses a way to help protect their employees from the losses of income that disabilities can cause.
What is Group Disability Insurance?
Group disability insurance is a type of insurance that provides financial assistance for employees who are unable to work due to a covered disability. As a group plan, the risks of employees becoming disabled are spread over all covered employees. This helps keep premiums for individual employees affordable.
What Disabilities Does a Group Disability Plan Cover?
Group disability plans have specific criteria that disabilities must meet in order to be covered. These are detailed in plans’ terms and conditions, and their other paperwork. Because each plan has specific criteria, business owners should review a plan’s criteria carefully with a knowledgeable insurance advisor before selecting a specific plan.
In general, plans’ criteria focus on both how long an employee has been unable to work, and whether they’re unable to work in their field or whether they can’t work at all. Some plans also have limits regarding how long they’ll pay for a covered claim.