Life & Health — Group Benefits
Group Disability Insurance
Protect your employees' income — and reduce the financial stress that follows a disability.
Group disability insurance replaces a portion of an employee's income if they become unable to work due to illness or injury. Offered as a group benefit, it's significantly more affordable than individual policies — and employers can often provide it with minimal underwriting requirements. It's a benefit that employees hope they never need, but are deeply grateful for when they do.
What's Covered
- Short-term disability — typically covers 60–70% of salary for up to 26 weeks
- Long-term disability — kicks in after short-term ends, may extend to age 65
- Both non-occupational and occupational disabilities
- Partial and residual disability benefits
- Survivor benefits in some long-term disability plans
- Rehabilitation and return-to-work support programs
Why It Matters
Many states operate mandatory short-term disability programs, but state benefit levels are limited and often insufficient for higher-earning employees. A supplemental group disability plan bridges the gap — ensuring your valued employees can maintain their financial footing during a difficult time.
Common Questions
What is the difference between short-term and long-term disability?
Short-term disability (STD) typically covers disabilities lasting up to 3–6 months with a short elimination period (0–14 days). Long-term disability (LTD) picks up where STD ends and can provide benefits for years or until retirement age.
Is group disability income taxable?
If the employer pays the premium, disability benefits received by employees are generally taxable. If employees pay the premium with after-tax dollars, benefits are typically tax-free. Premium contribution structure has significant tax implications — we'll help you design accordingly.
How does group disability interact with state disability programs?
Many states have mandatory short-term disability programs, and group LTD plans are typically designed to coordinate with them — the plan pays the difference between the state benefit and the total agreed benefit level, so employees receive their full protection without duplication.
Ready to get covered?
Talk to one of our advisors about the right policy for your situation. No pressure, no jargon — just honest guidance.