Group Disability Insurance in Massachusetts

Group Disability Insurance Can Help Your Business Care for Its Employees

Disabilities can have a profound impact on employee’s finances. Not only can disabilities prevent employees from being able to perform their current work, but they also sometimes make it impossible for employees to do other jobs. Employees who suffer from disabilities often suffer a significant drop in income, and they may not be able to earn any income at all. Group disability insurance gives businesses a way to help protect their employees from the losses of income that disabilities can cause.

What is Group Disability Insurance?

Group disability insurance is a type of insurance that provides financial assistance for employees who are unable to work due to a covered disability. As a group plan, the risks of employees becoming disabled are spread over all covered employees. This helps keep premiums for individual employees affordable.

What Disabilities Does a Group Disability Plan Cover?

Group disability plans have specific criteria that disabilities must meet in order to be covered. These are detailed in plans’ terms and conditions, and their other paperwork. Because each plan has specific criteria, business owners should review a plan’s criteria carefully with a knowledgeable insurance advisor before selecting a specific plan.

In general, plans’ criteria focus on both how long an employee has been unable to work, and whether they’re unable to work in their field or whether they can’t work at all. Some plans also have limits regarding how long they’ll pay for a covered claim.

What Kinds of Group Disability Plans Are Available?

There are at least two different ways to categorize group disability claims.

First, disability plans can be grouped by how long they pay on covered claims. Long-term plans typically provide coverage for disabilities that prevent employees from working for months or years. These plans often require employees to be unable to work for a length of time before the plans will begin providing supplemental income, but once they start paying many will continue paying for a long time. In contrast, short-term disability plans usually pay soon after an employee becomes disabled, but they’re only intended to provide additional income for a short duration of time, a few weeks or months. After the stipulated time period is over, these policies stop providing supplemental income.

Second, plans may provide either own-occupation coverage or income-replacement coverage. Own-occupation plans tend to cover employees who are unable to work in their chosen field, while income-replacement coverage usually only covers employees who are unable to work in any occupation. Income-replacement coverage often costs much less than own-occupation coverage, but income-replacement coverage can leave disabled employees with little protection if they’re able to work in another job -- even if that position pays much less than their current one.

What Businesses Should Consider Getting a Group Disability Plan?

Many businesses can benefit from obtaining group disability insurance. By adding it to employees’ benefits packages, businesses can both better protect their current employees and give prospective employees more comprehensive compensation offers. An advisor can help a specific business consider how a group benefit plan might benefit the business and its employees.

This material is for informational purposes only. All statements herein are subject to the provision, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy. The Feingold Companies is a full-service organization in which offers insurance and employee benefit services through affiliated companies. All individuals listed are affiliated with The Feingold Companies and offer insurance and employee benefit services through Feingold Insurance Agency, Feingold Financial Management and Feingold Employee Benefit Services. Saul Feingold, David Dimenstein, Jed Brandes, Elisa Lindley, Velma Almeida & Carlos Ortiz offer securities through Cambridge Investment Research, Inc., a broker dealer member FINRA/SIPC . Advisory services through Cambridge Investment Research Advisors, Inc. a Registered Investment Adviser. The Feingold Companies are not affiliated with Cambridge Investment Research, Inc. Connor MacNeil is not affiliated with Cambridge Investment Research Advisors, Inc. to offer securities or advisory services. Please be advised that the above referenced New Lakeside and Dudley Insurance Agency only offers insurance related products and services. This office does not contain individuals who are licensed or registered to sale or promote securities related products. If you are interested in receiving securities related products and services please visit or contact our Worcester Office location only. This communication is strictly intended for individuals residing in the states of AZ, CA, CO, CT, DC, FL, GA, IA, IL, MA, ME, MI, MN, NC, NH, NJ, NM, NV, NY, OH, PA, RI, SC, TN, TX, VA. No offers may be made or accepted from any resident outside the specific state(s) referenced. Copyright 2021. All Rights Reserved

GROUP DISABILITY INSURANCE

Group Disability Insurance Can Help Your Business Care for Its Employees

What is Group Disability Insurance?

What Disabilities Does a Group Disability Plan Cover?

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What Kinds of Group Disability Plans Are Available?

What Businesses Should Consider Getting a Group Disability Plan?

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