11.5.5 Group Disability Income
Most group disability income plans won't provide coverage for employees who have not been employed for at least a minimum period of time (usually 30-90 days). Plans can be short term or long term. If both plans are available to the group, once the short-term benefits are exhausted, the long-term plan will kick in.
Short-Term Disability
Group short-term disability plans are characterized by maximum benefit periods of short duration, such as 13 or 26 weeks. Group disability income is usually configured as a certain percentage of the individual's income. Benefits are typically paid weekly and range from 50% to 100% of the individual's income.
Long-Term Disability
Group long-term disability plans usually provide a benefit period of up to two years and more, even occasionally extending to the insured's retirement age. For the first year or two of disability, the insurer may use the definition of "occ" (own occupation) and later switch to the "acc" (any occupation) definition. (These two terms, "acc" and "occ," will be discussed further in detail in Lesson 14.) Benefit amounts are usually limited to approximately 60% of the participant's income.
Individual disability plans pay a specific amount of income benefits whereas group disability plans pay a percentage of the disabled employee's income earned before the injury.
AD&D
Group AD&D plans are typically offered through employers in conjunction with group life insurance plans. Group AD&D plans do not normally contain conversion privileges, unlike group health and group life plans. Some group AD&D plans will pay a higher benefit if the insured dies while on company business.
