Group Disability for Employees

There are two categories of disability insurance:

• Short-term disability insurance offers benefits typically lasting up to 16 weeks, but it can extend up to two years.
• Long-term disability insurance provides benefits for an extended period, following the cessation of short-term disability benefits. While a standard disability policy offers benefits until an employee turns 65, certain policies are designed to provide benefits for two or five years.

It’s important to note that disability insurance payments are not indefinite. The benefits end either when the maximum benefit period is reached or when the employee returns to work.

Furthermore, it is crucial to differentiate between group disability insurance and other types of group coverage, such as group critical illness insurance, which grants a lump sum payment if an employee survives a life-threatening illness, and group life insurance, which pays their loved ones a lump sum payment to alleviate financial burdens in times of loss.