The Best Group Disability Insurance in 2025

When you start a new job, your employer may offer you group disability insurance. This coverage can help you recover a portion of your income should you need to take extended time off work to recover from a serious injury or illness. The advantage of a group disability plan is that you're not responsible for paying the entire premium yourself. Offering group disability insurance is one incentive many employers use to recruit new talent.

An independent insurance agent can help you compare your group disability insurance options to find the right coverage. Your agent can help you determine which type of coverage is best for your unique needs. But first, check out our guide to the best group disability insurance companies and more.

What Is Group Disability Insurance?

Group disability insurance is a form of disability insurance offered by employers, often larger businesses and corporations, to their employees. This coverage can pay a portion of your income should you become injured or fall ill and are not able to return to work for an extended period of time. 

The illness or injury cannot be work-related. Otherwise, that would be covered under workers’ compensation insurance, which is also often provided by your employer. Depending on the severity of your injury or illness, you’ll either need short-term or long-term group disability insurance.

Is Group Disability Insurance Required?

No, an employer is not usually required to offer group disability insurance, and you are not required to opt into this coverage if your employer does provide it. Most companies that offer group disability insurance do so to provide a more comprehensive benefits package for workers. 

However, if your employer offers group disability insurance, it's often less expensive to purchase coverage through the company than on your own. That's because your employer likely pays a portion or even all of the disability insurance premiums.

You'll be responsible for covering any portion of the group disability insurance premiums not covered by your employer. However, you can also purchase individual disability insurance if your employer doesn't offer group coverage, or if the option your company offers is not sufficient. An independent insurance agent can help you weigh your options and choose the best disability insurance for your needs.

The Difference Between Short-Term and Long-Term Group Disability Insurance 

There are two main types of group disability insurance, short-term and long-term. It's helpful to understand the differences in each type of coverage in case you ever need to use it.

• Short-term disability insurance: This can pay to replace a portion of your typical income, usually about two-thirds or even up to 80%, for a specified period of time. Short-term disability insurance coverage periods usually range from 13 to 52 weeks. Once you’ve reached the end of your short-term disability coverage period, you can get evaluated to see if you need to switch to long-term disability if you're still unable to return to work. 
• Long-term disability insurance: This can pay to replace a portion of your typical income, usually up to 60%, for an extended period of time. Long-term disability policies can last for several years, often ranging up to 10 years. or even for the entire life of the policyholder. 

Some employers offer both short-term and long-term disability policies, while others offer just one type. No matter which form your employer provides, you can choose to purchase individual disability insurance or supplemental disability insurance through your independent insurance agent.

Is Short-Term or Long-Term Group Disability Insurance Better for Me? 

Determining whether short-term or long-term disability insurance is better for you comes down to considering what’s offered by your company, your financial situation, and some other factors. There are pros and cons to both short-term and long-term disability insurance.

Short-term disability insurance pros and cons:

Pros:	Cons:
Replaces up to two-thirds or even 80% of your standard income for a set period	Comes with stricter coverage limits
Usually very affordable when offered through an employer	Only available for short-term durations, usually between 13 and 52 weeks
Can be used to cover pregnancy and childbirth	Has a coverage waiting period of up to 14 days
Can be converted to long-term disability insurance once the policy term expires

Long-term disability insurance pros and cons:

Pros:	Cons:
Replaces up to 60% of your standard income for a longer period	More expensive premiums than short-term disability insurance
Benefits are tax-free	Can be even more expensive as you age
Can cover serious and chronic illnesses and injuries, ranging from cancer to PTSD	Coverage may come with more limitations
Can extend coverage period until retirement	Expensive to maintain if you don't need this coverage

Your independent insurance agent can further advise you on whether short-term or long-term group disability insurance is the better choice for you.

Questions to Ask When Choosing Between Short-Term and Long-Term Group Disability Insurance 

Fortunately, when choosing between the available options of group disability coverage, there are many ways to help make your decision easier. You can ask yourself the following questions to help determine whether a short-term or long-term disability policy is best for you.

Disability insurance needs are often highly individual. For some people, having just disability insurance is enough, and for others, it's recommended that they combine it with other policies such as life insurance. Working with an independent insurance agent can help you determine which type of coverage would work best for you.

Common Conditions Covered by Short-Term and Long-Term Disability Insurance

When deciding between short-term and long-term group disability insurance, knowing which conditions each type of coverage is likely to pay for can be extremely helpful.

Short-Term Disability Insurance Often Covers:
Pregnancy and related complications	Short-term illnesses
Car accidents	Medical procedures
Surgery recovery	Digestive disorders
Back and joint disorders	Various mental health disorders
Other accidents

Long-Term Disability Insurance Often Covers:
Crohn's disease	Anxiety
Clinical depression	Chronic fatigue syndrome
Chronic pain	Bipolar disorder
Post-traumatic stress disorder (PTSD)	Arthritis
Joint issues	Alzheimer's
Dementia	Multiple sclerosis (MS)
Parkinson's disease

Remember that short-term disability insurance can be converted to long-term disability insurance if an illness or injury still requires treatment and leaves you unable to work once the coverage period expires. However, many illnesses and injuries only require the coverage provided by short-term disability policies.

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Who Sells the Best Group Disability Insurance?

When deciding to opt into your employer's group disability insurance or purchase your own individual disability insurance, it's helpful to know which carriers offer the best quality. If your employer's group disability insurance isn't from a reputable carrier, it may be a better choice to purchase your own policy. Here are our top recommendations for the best disability insurance companies this year.


           

Top Group Disability Insurance Companies	Carrier Star Rating
Lincoln Financial	5 Stars
Prudential	4.5 Stars
Aflac	4 Stars
Assurity	4 Stars
Mutual of Omaha	4 Stars
Northwestern Mutual	3.5 Stars
The Hartford	3.5 Stars
MetLife	3.5 Stars

How Much Does Group Disability Insurance Cost?

The cost of your group disability insurance can vary due to several factors, including the type of coverage offered by your employer and the percentage of the premiums you must pay on your own. The portion of the group disability insurance premiums you're responsible for will be deducted from your paychecks. If you choose to purchase individual coverage, a local independent insurance agent can help you find affordable disability insurance in your area.

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The Benefits of an Independent Insurance Agent

When you're ready to find the right group disability insurance, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple insurance companies, so they're free to shop and compare policies and rates for you. They'll present you with several quotes representing only the best options. And down the road, your agent can help you file claims and update your coverage when necessary.