Group Disability Insurance

Group disability insurance is insurance purchased by an employer to protect the income of employees should they be unable to work because of illness or injury. Loss of income is a financial blow to any working person, regardless of their salary. Lifestyle usually rises to meet the level of income, and it is that lifestyle that is immediately jeopardized by a sudden stop to the flow of income.

Not required by law, group disability insurance can be obtained for the various circumstances of a small or large business. Some companies have income protection policies for businesses comprised of only three to nine employees, and this long-term disability insurance provides for monthly benefits for disabilities lasting longer than 13 or 26 weeks. Short-term policies might provide benefits for up to 26 weeks.

Basic Employer Insurance

Some large corporations restrict their group coverage to those in middle management positions or higher. For small businesses, each employee is more valuable in terms of maintaining a smooth operation. When an owner has only three employees, each person is vital to the continuance of the business.

Group insurance is not as comprehensive as individual insurance, but it is cheaper. If you cannot afford to obtain an individual policy, the employer's coverage is much better than having nothing at all. In case of being off work for a time, it may not replace a large percentage of your salary, but even a little bit of money coming in every week or month is helpful.