Product Overview > Group Plans > Disability

Why is Group Disability Insurance coverage important?

Perhaps second only to medical insurance in importance, disability insurance is nevertheless often overlooked. With the probability of disability much higher than that of premature death, disability insurance should be considered essential, and it is especially key in recruiting and retaining executive employees. Except for lower-paid employees, state temporary disability benefits (where available) and Social Security disability payments are far from adequate, and even qualifying for these benefits is not certain.

Individual disability insurance is available, of course, but subject to very stringent medical and financial underwriting requirements. Even with individual coverage in place, no business owner, executive or manager should be without group coverage for full protection against loss of income due to disability. Group disability insurance is often obtained for only the higher-paid classes of employee in a company, thereby providing coverage for those whose income levels would be most affected by disability while keeping the employer cost low.

How is this type of coverage purchased?

Group disability insurance is usually paid for by the employer and the plan can be designed to provide different levels of coverage for different classes of employee. Underwriting and administration are very simple, with benefits being expressed in terms of a percentage of each employee's average income. Benefits may increase automatically as income increases.

Because benefits paid under a group disability policy have the potential of continuing for many years, choice of a financially sound insurance company with a good record in disability insurance sales is essential.

Key considerations when choosing a plan include:

• Whether employees should be classed and which should receive benefits.
• The level or levels of benefits to be provided.
• The period of disability before benefits begin, and the duration of benefits.
• The selection of a suitable insurance company.
• The potential tax consequences to employees.

How to learn more:

Your Kistler Tiffany Benefits representative will work with you in designing the right group disability insurance plan for your company's particular needs and in selecting the right insurance company to assure that you are getting maximum value for your premium expenditure.