Is my Group Disability Policy good enough?

Employer sponsored group coverage is certainly better than nothing, is easy to obtain, and free or inexpensive. Unfortunately the good stops there. Group insurance has several major drawbacks:

• The insured has little control over the benefits offered, it’s often a one size fits all plan.
• The plans are often not portable should you change employers
• As they require little or no underwriting, the insurance company doesn’t have a lot of info to determine the risk, therefore the quality of the contract tends to be poor.
• If the employer pays for or toward the policy it can have tax ramifications on any benefit collected.
• Group often covers only total disability without coverage for reduced income for partial claims.

Fully underwritten individual policies are almost always far superior to group coverage in most every aspect. The company evaluates your situation and cost, benefits, terms of the contract are tailored for your particular situation. The policies are portable when changing companies or states.

If you have a group policy that’s great, let us review it and your current situation to see if some individual coverage would be a good supplement for what you have in place.