How Group Disability Insurance can Sustain Your Income

Group disability insurance is a disability insurance policy covering everyone in a certain group. If any one of the individuals in the group is disabled and unable to work, the policy will cover a portion of that person’s income. Because a group of people all make payments into the policy together, these policies are usually cheaper than if an individual purchased insurance on their own. Your employer may even offer you the chance to participate in a group disability insurance plan as one of your workplace benefits.

Because there are a number of people sharing the costs of the insurance, however, most group disability insurance policies put limits on any payments they make. Most policies only cover up to 60% of a person’s income, or may have a maximum monthly payment amount. Other group disability insurance plans may restrict your disability payment depending on any benefits you may be receiving from other insurance plans or from Social Security benefits. 

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