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Group Disability Insurance
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Having group disability insurance as a part of your group health plan through your workplace is always a good idea. If your workplace does not offer any type of group disability insurance you might be able to obtain it through an association or organization in your town or city. Approximately half of all mid to large size companies offer a health plan to their employees and many contain group disability insurance as well. Be aware though that disabilities come in many shapes and forms so make sure you completely understand before disaster strikes, what you can expect in regards to benefits from your group disability insurance.
In most cases a group disability insurance plan will cover a person for up to 60 percent of their regular income, which can be offset to a certain extent by money received from worker’s compensation if you are hurt on the job or else social security. Be aware that the majority of group disability insurance plans have a benefit cap, which could be on a monthly and/or a yearly basis. For example, the cap could be $4,000 or $5,000 a month or it could be $50,000 or $60,000 on an annual basis. It is important to be aware of the fact that bonuses often do not play any kind of a role in a group disability plan.
When it comes to a group disability insurance policy most will not pay any benefits beyond a two-year period of time. In other words after two years you need to give the insurance company concrete proof that you are unable to hold down not just your own job but any job in the same line of work or another type of work all together. If you are able to work at all the insurance company might prompt you to get some new form of job training.
A group disability insurance policy can be as comprehensive as you wish it to be although the more comprehensive it is the more you will pay. Keep in mind that disability can come about in the short-term and the long-term. Short-term disability is sometimes referred to as sick leave and it can become effective as soon as you inure yourself, develop an illness, or give birth. Short-term disability in regards to group disability insurance can last anywhere from a couple of days to a matter of weeks to a year (and in some cases even two years). There are some companies that offer short-term disability based on how long a person has been employed with the business. In this way then, the longer you have worked at a company, the more time you will get to be off work if you hurt yourself. There are five states that mandate short-term insurance and these include California, Hawaii, Rhode Island, New Jersey and New York. This works out to be 26 weeks worth of coverage for the most part.
Long-term disability is what you need to go on if short-term disability is not enough. This tends to vary from company to company but generally begins anywhere from two to three years after an injury or illness. When in doubt check your group disability insurance policy for more details.
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