If group disability coverage is an option in the benefits package offered by your employer, you may be uncertain whether having the monthly premium deducted from your paycheck is worth it. Here is some information about this type of insurance to help you make an informed decision.
Short-Term vs. Long-Term Disability Coverage
Disability insurance protects you from loss of income in case you become physically disabled and cannot work. Short-term disabilities are injuries and medical conditions such as minor surgeries, illnesses, and childbirth that affect you for a specified amount of time, usually one year or less. Long-term disabilities are those that prevent you from working for a number of years.
Group vs. Individual Insurance
A group plan is so-named because it is available to a group of people, rather than to individuals. An employer or head of another organization purchases the insurance, and is able to offer it as long a minimum number of employees or group members opt in. The premium is is then split between employers and employees. Because of this cost-sharing, group plans are usually less expensive than individual plants.
In summary, group disability insurance is usually an affordable way to ensure that you continue to pay your bills in the unfortunate case that you become disabled.