Know the Common Differences Between Group and Individual Long Term Disability Insurance

• Group long term disability coverage is normally less expensive, per covered employee. Much like the preferred philosophy of banks, credit unions, and other lenders, spreading risk is of prime importance in calculating the cost of services. Insuring a typical group is statistically less expensive than insuring an individual.
• Individual long term disability insurance coverage can be tailored to meet your specific needs. With your own policy, you can add or subtract features to create a custom long term disability program.
• Long term disability insurance will be costlier with individual coverage but will give you better protection. Of particular interest to professionals, individual disability long term disability coverage will often better satisfy your needs and wants.
• Group benefit income is often taxable while individual long term disability insurance coverage is often tax free. This consideration can become a major benefit when you’re already attempting to maintain a certain lifestyle on a reduced level of income.
• More advantageous definition of disability is available with individual long term disability insurance coverage. Instead of the common “any occupation” language in a group policy, you can select to have “own occupation” coverage included in an individual long term disability contract.