Group Disability Insurance

• Group Long Term Disability
• Group Short Term Disability
• Supplemental Disability

Group Long Term Disability

This benefit is usually paid for by the employer, although some insurance companies offer it on a voluntary basis, where an employer doesn’t offer employer paid coverage In Buffalo and WNY. Waiting periods usually are either 90 or 180 days and benefit percentages range from 50% to 70% of wages. Wages can be defined in many ways. They may use the amount on a W-2, K-1, or a schedule C. Wages may or may not include commissions, overtime, pension contributions, and/or amounts over a certain level of income. Additional benefit riders may include, social security offsets, cost of living, residual disability, catastrophic (needing assistance to perform essential daily living activities) etc.

The definition of disability can vary widely by company and class of business. Definition of disability and earnings levels may separate classes of employees. As an example, Officers may be offered a definition of to age 65 “your occupation” as opposed to 2 years for all other employees. Definitions can be specific, as insuring the specialty within an occupation (physician or surgeon). Each company is different and very few companies specialize in the physician, healthcare, and professional service marketplace.

Group Short Term Disability

Short-term disability is offered on an employer paid or voluntary basis. When employer paid it may be a flat amount or a percentage of wages, the latter being the most popular. It is usually non-occupational and is written in coordination with statutory New York State Disability Benefits Law Insurance. Waiting periods are usually 7 or 14 days and benefit periods are rarely longer than 6 months. Benefit percentages (percent of wages) range from 50% to 70%. The maximum weekly benefit level is usually $1,000 and may be higher for some professionals and very large employers. Some benefit riders are available, but far fewer than group long-term disability.

Supplemental Disability

The word supplemental has generally been defined as “adding to something”. The insurance company AFLAC, has made the phrase supplemental insurance or supplemental benefits certainly one of the most recognized. There are several insurance companies offering supplemental insurance. AFLAC, Colonial Supplemental Insurance, Allstate Worksite Division, Transamerica Worksite, Mutual of Omaha and several others. Most of them offer similar products on an employer sponsored basis. The disability benefit offers many options for the employees. Benefit periods can either be 3, 6, 12, or 24 months. Waiting periods can be 0/7((zero days for accident and seven days for sickness), 0/14, 14/14, 30/30, or 90/90. The best feature is that each employee can choose a different waiting period, benefit period, and benefit amount. Most policies cover accident and sickness, although some companies will provide an Accident Disability Only contract. Underwriting is less stringent than if an employee was to buy an individual disability product through normal channels. The waiting periods are also an advantage, as the individual marketplace no longer offers such short waiting periods.