Group Long Term Disability Insurance

Like life insurance, the point of disability insurance is to protect your future income, in the event that you become physically incapacitated and unable to earn a living due to a physical or mental disability. A long term disability could seriously hurt your ability to earn a living, possibly indefinitely. In many ways, disability insurance is protecting your most valuable asset: your ability to make a living. This is why a group long term disability insurance policy is often among the most valuable benefits provided by employers to employees today.

There are many different types of disability insurance available to you, but most often, if you are talking about a group long term disability insurance policy, that type of policy is provided by your employer. It is also possible for you to buy an individual policy, but individual long term disability insurance is almost always more expensive than a group long term disability insurance policy. However, individual long term disability insurance benefits are considered non-taxable if the individual long term disability insurance policy premiums were paid by the individual with after-tax dollars. Group long term disability insurance may be taxable, because it is usually paid for by the employer with pretax dollars.

If you are an employer who wants to provide a group long term disability insurance policy to your employees, you have a few different options as to the types of group long term disability insurance policies, depending on how many employees you have. For small businesses, you can purchase small group long term disability insurance, which benefits employers who have between three and nine employees. For employers with ten or more employees working for them, there is large group long term disability insurance. Talk to your local insurance agent to see what is the best group long term disability insurance policy for your organization.