Group/Association Disability Is No Substitute for properly written Individual Disability Income Insurance.
The weaknesses of Group/Association Long Term Disability Insurance “LTD” are:
- No Peace of Mind: Group policy’s can be changed or canceled by the insurance company or your employer at any time leaving you without the peace of mind insurance should provide.
- Portability: Group policies are not portable so when you change jobs the policy cannot be taken with you…
- Weak Definitions: Group contracts are not as liberal as Occupation Specific Individual Disability Income Protection…
- Taxable: Group policies are taxable when your employer pays the premiums
- True Own Occupation Protection: Is not available. If disabled and get a new job the new income will lower or eliminate your benefit altogether with group policys.
- Offsets or Reductions: Group policies are offset/reduced by any Social Security and workman compensation benefit you receive.
- Benefits are not Guaranteed: Benefits are based on a percentage of salaried income. Benefit amount fluctuates and Bonus and Commissions are typically not covered!!!
- Rates are not guaranteed: Rates can and will go up..
- Partial disability: Partial disability may not be covered.
Group Protection should only be used as a supplement to properly written individual protection. Not as your only means to support yourself.
