Group disability insurance, even with employee contributions, is an affordable way to insure against loss of income along with all of the other attendant risks. Underwriting requirements are often simplified and any costs born by the employee are deducted through payroll. Group disability insurance is fast becoming a standard employee benefit, one of which individuals should be aware and one with which planners can offer help in understanding and analysis. Candidates should expect a handful of questions on group disability policies, particularly in the way that they differ from individual arrangements and their taxability.

Learning Objectives

  • Understand the basic features of a group disability policy.
  • Be able to note the features that differentiate group from individual disability arrangements.
  • Be able to understand and interpret the salient features of a group disability policy for a client.
  • Be able to discuss the various tax features of a group disability policy.
  • Be able to discuss the mechanics and applicability of group disability plan conversion features.

Definition of Disability

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