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  • While many people think about what medical treatment is necessary after a disabling illness or injury, not being able to work is a real concern for people suffering from a chronic condition and their families. Group long-term disability income insurance provides an option to help you replace the normal income if you find yourself in such a situation.

    Function

    A long-term disability income insurance policy provides you with a payment each month if you are unable to work at the job you held before your illness or injury.

    Features

    A group long-term disability income insurance is one provided by an employer to its employees. In some cases, your employer pays for the entire policy and provides the coverage for you automatically, while others' employer offer the coverage on a voluntary basis, requiring you to pay for all or part of the premiums

    Time Frame

    Group long-term disability income insurance policies generally begin to provide benefits once you have been out of work for six months due to your illness or injury.

    Payments

    The amount of the monthly benefit payments paid by group long-term disability income insurance is equal to a certain percentage of your monthly income, up to a certain maximum amount. The insurance certificate or policy summary from your employer details the exact percentage and monthly maximums for your policy.

    Taxation

    If your employer paid the premiums of your group long-term disability income insurance policy, any payments you receive from the insurance are subject to federal income tax. If you paid for all or part of the premium yourself, all or part of the benefit payments are tax-free.

    Benefits

    Group long-term disability income insurance policies are generally free or less expensive than purchasing long-term disability insurance individually or directly from an insurance company. In addition, group long-term disability insurance typically does not deny coverage to any employee of a company, regardless of age or medical history.

    Source:

    Federal Citizen Information Center: Long-term disability income insurance

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