More and more employers recognize the value of providing disability insurance coverage to their employees. It fills gaps in financial protection left uncovered by public disability income assistance programs. It can be a key component of a competitive benefits package for employers who need to attract and retain talented employees. And disability insurers can also help employers manage time lost to disability and return their valued workers to productivity.
Group disability income plans differ from individual plans in a number of ways. Individual plans usually specify a flat income amount, based on the person's earnings, determined at the time the policy is purchased. In contrast, group plans usually specify benefits in terms of a percentage of the individual's earnings.
Employers may offer short-term disability coverage, long-term disability coverage, or integrate both short and long-term disability coverage.