Group Disability Insurance

What Is Group Disability Insurance?

Group disability insurance replaces a portion of an employee's income if they're unable to work due to a covered illness or injury. It's offered through the employer, typically at a lower cost than an individual policy, and is one of the benefits employees are least likely to think about until they actually need it.

Short-Term vs. Long-Term Disability

Short-term disability coverage typically replaces a portion of income for a matter of weeks to a few months, often covering situations like recovery from surgery or a temporary medical leave. Long-term disability coverage picks up for more extended or permanent conditions, potentially providing income replacement for years or until retirement age, depending on the policy. Many employers offer both as a layered approach to protecting their team.

Why Offer Disability Coverage

An unexpected illness or injury can be one of the more financially disruptive events in an employee's life — disability coverage helps make sure a health setback doesn't automatically become a financial one too. It's often available at a modest cost relative to the protection it provides, which is part of why it's a common addition once a business already offers health insurance.