Group Disability Insurance Companies

So, what is group disability insurance?

Disability insurance is designed to replace a portion of an employee’s income if they cannot work due to injury or illness. It can be a physical injury or a complication of an illness; it’s considered a disability if it prevents you from performing your work tasks for some time.

Being unable to work for an extended time can bring an array of financial uncertainties. Hence, it’s necessary to protect your income at all times, especially when you can’t generate it.

Group disability insurance through work

Many employers cooperate with group disability insurance companies to offer group insurance packages to their employees. Group disability insurance companies state that the most common type of group policies are those provided by employers.

Moreover, according to 2018 reports from the Bureau of Labor Statistics (BLS):

• 42% of employees in the private sector had short term disability insurance plans through their employer, with 85% of the plans being fully paid by the employer.
• 34% of employees in the private sector had long term disability insurance plans through their employer, with 94% of the plans being fully paid by the employer.
• 26% of employees in the state and local government sector had access to short term disability plans, with 87% of the plans being fully paid by the employer.
• 38% of employees in the state and local government sector had access to long term disability insurance, with employers paying the full amount in 83% of the cases.

A positive indicator is that these percentages keep increasing every year, showing that both employers and employees started seeing the benefits of having group disability insurance plans.

Why go for group disability insurance companies?