Understanding Group vs. Individual Disability Insurance Policies: Key Differences

Disability insurance comes in many forms, two of which are individual disability insurance and group disability insurance. Knowing the key differences between individual and group disability insurance is important for selecting the type of disability insurance that fits your needs. Each type of disability insurance comes with different pros and cons. Feel free to ask a Philadelphia disability lawyer for help if you have questions.

Group Vs. Individual Disability Insurance

There are key differences between group and individual disability insurance to be aware of. Understanding these differences may help you decide which type of insurance policy is best for your unique needs. Group disability insurance and individual insurance each come with their own pros and cons.

Not only do group and individual disability insurance differ on benefit levels and cancellation policies, but they can also differ in defining a disability. How a disability insurance policy defines a disability is crucial when it comes to eligibility for disability benefits. Individual disability insurance tends to cover a larger range of disabilities, while group disability insurance might be more limited.

Individual disability insurance is also non-cancellable. This means your benefits under individual disability insurance only stop when you stop paying the premiums, whereas group disability insurance can be canceled by your employer at almost any time.

Compared to group disability insurance, individual disability insurance tends to offer a wider array of options for benefits. Not only that, but benefits could be paid for the rest of your life under individual disability insurance while group disability insurance can stop after six months or after age 65 and older. One benefit of group disability insurance is not always having to undergo a medical exam for the application process. 

Types of Individual Disability Benefits 

There are also different types of individual disability benefits offered by the government. The Social Security Administration (SSA) offers two types of disability benefits programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI is based on work credits from past jobs that have paid into Social Security, while SSI is based on monthly income.

If you do not have enough work credits, do not panic. You may still qualify for SSI if your monthly income is less than a certain threshold. To qualify for either program, you will need to have a disability that meets the SSA definition of a disability.

The SSA defines a disability as a physical or mental condition that significantly impairs work performance. A disability must also last at least one year or be expected to be terminal. Consider contacting a Philadelphia disability lawyer to learn more about the disability benefits eligibility criteria for the SSA disability benefits programs.

Contact Edelstein & Nelson for Legal Help

Navigating between group and individual disability insurance can be confusing. Do not hesitate to ask a Philadelphia group disability insurance attorney for help with figuring out which disability insurance program to apply for. Call Edelstein & Nelson by dialing (800) 300-0909 for a consultation today about your options for disability benefits. Our experienced team of lawyers is ready to help you increase your chances of receiving disability benefits.