To help employees obtain coverage in the event of disability, employers purchase individual and/or group disability insurance plans. These insurance plans have several key differences:
- A group disability insurance plan is the standard coverage strategy for the majority of employers.
- Individual disability insurance plans can be purchased by employers as supplemental coverage, or as the primary insurance plan if group coverage is unavailable.
- Group disability insurance plans typically have lower premiums, however, they also tend to have more limited benefits.
- While individual disability insurance plans usually have higher premiums, they tend to provide better benefits to disabled employees.