Approximately one third of employers offer employer sponsored group disability insurance to their employees. Participation tends to be greater among the larger sponsoring employers who have one hundred or more employees. Employees evaluating a benefit package (as well as employees already covered under a group disability insurance arrangement) would do well to review and understand basic provisions which are described below.

Eligibility
While NAIC guidelines do not require a minimum group size as a condition for eligibility, most states require a minimum number of eligible participants for an employer to be able to offer a group plan. Full time and active employment typically constitutes eligibility. As to eligible groups, they must be natural groups, formed for any reason other than for the procurement of insurance. The number of hours required per week in satisfaction of this requirement may vary by employer.

Additionally, some employers may require the completion of a probationary or waiting period for new employees for a period of thirty to ninety days before they may enroll in the plan. The enrollment period of typically thirty one days follows, allowing the newly eligible employee to sign up for group coverage.

Evidence of insurability may be required if the employee declines enrollment during the initial enrollment period and subsequently decides to join the plan. Once a policy is issued, insurers usually require a certain rate of participation of the group in order for it to keep coverage in force.



Common Features

Related Articles
  1. Financial Advisor

    Group Term Life Insurance: What You Need to Know

    Is group term life insurance really a good deal? What you need to know about employer-sponsored group term life insurance coverage.
  2. Retirement

    6 Benefits You're Required by Law to Offer Your Employees

    Learn about the benefits that a business must offer to employees, such as family and medical leave, as well as various forms of insurance coverage.
  3. Financial Advisor

    Individual vs. Group Health Insurance: What's the Difference?

    The Affordable Care Act requires all Americans to get health insurance through employers or the federal exchange, and differences exist between both channels.
  4. Financial Advisor

    Life Insurance Plans to Help Your Small Business Retain Employees

    How to use and design cash value life insurance plans as an incentive to help attract and retain key employees.
  5. Financial Advisor

    How to Help Clients Navigate Open Enrollment

    With companies trying to pass on more costs to employees, making the right choices during open enrollment is more important than ever.
  6. Insurance

    Take Advantage Of Employer-Sponsored LTC Insurance

    Find out why 98% of employees are missing out on some great benefits.
  7. Retirement

    SIMPLE IRA Contribution Limits in 2016

    Learn the SIMPLE IRA contribution limits for 2016, with a brief summary of how the plan works, including eligibility and contribution and distribution rules.
  8. Insurance

    SHOP Marketplace: How it Works for Employers

    SHOP is a health care insurance resource available for for-profit and nonprofit small business owners that has a straightforward sign-up process.
  9. Insurance

    Group and Individual Disability Insurance: What You Need to Know

    What you need to know about group and individual disability income coverage.
  10. Insurance

    Getting Health Coverage Outside Open Enrollment

    Nine qualifying life events that trigger a special enrollment period for individuals seeking group or marketplace health insurance.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center