Group Long-Term Disability Insurance

(And is it worth it?)

Group long term disability insurance

People aren’t normally lining up to talk about group long-term disability insurance, but we will dive into why they should. When you walk away from this article you will have a good understanding of what group long-term disability insurance has to offer.

Connecting with a local independent insurance agent can make all the difference in the world when it comes to group long-term disability. Making sure you are covered for all the what-ifs in life is kind of their job and they’re really good at it.

What Is Group Long -Term Disability Insurance?

So glad you asked and it’s a lot like it sounds. Group long-term disability insurance is coverage that provides income supplementation while you are unable to work due to a disability or severe illness. 

The group part of this equation is that an employer is offering this long-term disability coverage to a group of their employees, and you are a member. If you partake in the coverage offered, you are part of the group and as such get the group rates. Think Costco but better.

Types of claims for group long-term disability

  • Musculoskeletal injuries: These are common injury types in group long-term disability claims. Musculoskeletal injuries are injuries of the soft tissue caused by impact or force. 
  • Complications of pregnancy: Another highly claimed payout is complications resulting from pregnancy. This can fall under short-term disability too, but if complications continue, then your group long-term disability will be there to pick up the slack.
  • Cancer, heart disease or severe illness: Severe illness is a big factor in the long-term disability game. Cancer and heart disease rank among the top in the US. Most group long-term disability policies provide coverage for such things.
  • Injuries that cause disability: This is not workplace-related injuries, this is injuries that you sustain outside of work. And they are covered under your group long-term disability plan. Save those work-related injuries for your employer’s workers' compensation policy.

Who Needs Group Long-Term Disability Insurance and Why?

group long term disability

Group long-term disability coverage is needed if you are an employee and if you are an employer. If you are an employee, then you need this coverage from your employer in order to get the best member rates. It’s really great, because on group plans the insurance companies are more laid back about health qualifications.

If you are an employer, then this is something that your independent insurance agent can go over in more detail. But you want to be sure that you have this offering for your employees, because it can help with retention and show that you value them enough to take care of them.

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When Is the Best Time To Get Group Long-Term Disability Insurance?

The best time to get group long-term disability insurance is ASAP. This is the type of policy you do not want to wait on getting. The benefits could literally mean the difference between living as you normally do or being in the poorhouse. 

Your everyday expenses are not something to mess around with, and with a decent number of US citizens still having to use disability insurance in some form or other, the need isn’t going away.

What Is the Best Group Long-Term Disability Plan?

With all this talk of bests, it’s a fair topic to discuss what the best group long-term disability plan is. The answer is that it all depends. There are a number of different factors that come into play when you are planning for your group long-term disability insurance

These include age, amount of coverage and health. Luckily, your group long-term disability plan doesn't usually factor in health disqualifiers. It’s important to know how much of your income will be supplemented at a time of loss. This can range from putting 40%-70% of your monthly income back in your pocket when you are unable to work.

How Long Does Group Long-Term Disability Insurance Last?

The duration of long-term disability varies and depends on how long your disability or illness lasts. It can also depend on your policy terms. Some policies have a preset period that the policy will pay out. 

Others last for the entire length of the disability or illness, even if it’s for the remainder of your lifetime. That’s why it's a great idea to contact your local independent insurance agent and discuss these varying benefits. 

How Much Does Group Long-Term Disability Cost?

Time is money and money is time. That’s a common phrase that applies to the cost of group disability long-term insurance more than ever. You are quite literally paying for time. The length of time that you will get benefits and the more time you need them, the more it’s going to cost. 

That being said, it’s unrealistic to give even a ballpark figure when it comes to group long-term disability costs. Every plan is different, every insurance carrier is different, and every company offering group plans is different. The best advice is to go talk with your independent insurance agent for options.  

Is Group Long-Term Disability Coverage State-Specific?

When it comes to group long-term disability state policies, the insurance companies are the big dogs in town. Of course, the insurance companies have to abide by any state regulations and laws when it comes to certain coverages. The carriers are the ones who write the policy language and offerings, for the most part.

disability income

Save on Disability Income Insurance

Our independent agents shop around to find you the best coverage.

Can an Independent Insurance Agent Help?

Independent insurance agents are the cream in your coffee. They are here to light up the dark corners of your insurance policies and provide knowledge. Advising is their game and they are winners at it. 

Independent insurance agents are local, they care, and they work with a ton of insurance companies so you don’t have to. They are the go-betweens and they work for you. It’s nice to be the boss. 

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