Group Long-Term Disability Insurance Guide
High-level overview of the most frequently asked questions
Group Long-Term Disability
Group long-term disability insurance provides similar coverage as individual disability insurance, except it is offered through an employer organization.
Just like individual long-term disability insurance provides income protection. It can provide coverage in the case an employee is unable to work for a long time due to:
- Illness
- Injury
- Accident
Employee Long-Term Disability
Many people believe worker's compensation will provide the benefits to protect them in case of injury or disability.
However, worker's compensation only covers you if it is related to your job. Long-term disability insurance covers you regardless of where the accident, injury, or disability occurs.
In addition, long-term disability insurance has the potential to replace a larger percentage of your income if you become disabled.
What Long-Term Disability Insurance Covers
According to LIMRA's 2020 - 2021 Insurance Barometer study, the following are the most common reasons for long-term disability claims:
- Cancer (15%)
- Mental health issues (9.3%)
- Circulatory (such as heart attack, stroke) (8.2%)
- Musculoskeletal disorders (27.6%)
- Injuries such as fractures, sprains, and muscle issues (12%)
Benefits of Group Disability Long-Term Insurance
Group long-term disability insurance can provide an additional benefit and value to your employee group. The benefits for your employees can include:
- No medical exam
- Plan design flexibility
- Discounted premiums
- Support to your employees
- Premium payment flexibility
- Recruitment and retention tool
- Premiums can be tax deductible
- Insurance policy may be portable
By aggregating long-term disability insurance for a group, employees benefit from the group rates. This means the premiums may be lower for the individual as compared to shopping alone.
Not having a medical exam required can be a major benefit for certain people. Individuals who may not normally qualify for long-term disability insurance may now qualify.
Finally, offering group long-term disability insurance for employees can really help them, especially in times of need. It is an additional benefit to support your employees in potentially difficult times.
While not all employees will value it, for some it may be highly important and be potential recruitment or retention tool.
How is Long-Term Disability Group Insurance Paid For?
How group disability is paid for depends on how the insurance plan is designed. The business may have the option to either:
- Pay the premium themselves
- Allow the employee to pay it
- A hybrid model where the business pays part of it
Is Long-Term Disability Group Insurance Tax Deductible
Group Long Term Disability Agent Services
Langan Financial Group can help business owners, associations, and unions review group long-term disability insurance benefits.
Because Langan Financial Group is not tied to a specific benefits provider we can compare products from numerous companies.
This will allow us to see what product aligns best with your group's benefits needs.
We will do our best to provide you with the best options to choose from. We provide a collaborative approach when reviewing your options.
We will discuss the pros and cons of each policy, so you can make an informed decision.
Schedule a Chat with a Group Disability Insurance Agent
Langan Financial Group's insurance agents have over 100 years of experience servicing insurance policies for individuals and families.
Give us a call at 717-288-1880 to see how our local agents can help with your insurance policy needs. Or visit our group disability agent contact page to fill out an inquiry.
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Harrisburg, PA Office
Address: 1863 Center St, Camp Hill, Pa 17011
Phone: 717-288-1880
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Address: 3405 Board Rd, Suite 200, York, Pa 17406
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