Worksite Short Term Disability Insurance: Group and Individual Options
What is short term disability insurance?
Short term disability insurance is designed to replace a portion of a person's income if a disability due to injury or illness temporarily prevents them from working. Through the worksite channel, this benefit is offered to employees by their employer. In addition, employers may choose to offer worksite individual and/or group short term disability insurance.
What is the difference?
Worksite Individual Short Term Disability
Worksite Group Short Term Disability
Ownership
Individual
- Employee owns the policy
- Employee may keep the coverage if they leave the business
Ownership
Group
- Employer owns the policy and employees are issued a certificate
- Employees cannot keep the coverage if they leave the business
Rates
Individual
- Vary by business industry class
- Based on employee classification and age at time of policy issue
Rates
Group
- Same across all industries and occupations
- Increase at established intervals as employee ages
Eligible Employees
Individual
- Available for W-2 and 1099 contracted employees
Eligible Employees
Group
- Available only for W-2 employees
Method of Payment
Individual
- Payroll deduction or Electronic Funds Transfer (EFT)
Method of Payment
Group
- Only payroll deduction
Benefit Payments
Individual
- Monthly benefit payments
Benefit Payments
Group
- Weekly benefit payments
Benefit Periods
Individual
- Options range from 3 months to 60 months*
Benefit Periods
Group
- Either 13 or 26 weeks*
Benefit Amount
Individual
- Maximum of $5,000/month
Benefit Amount
Group
- Maximum of $600/week
Underwriting
Individual
- Guaranteed issue guidelines for groups with at least ten employees; health questions asked on application
Underwriting
Group
- No evidence of insurability needed if employee enrolls during initial eligibility period
Coverage Options
Individual
- Off-job or 24-hour coverage*
Coverage Options
Group
- Off-job coverage only
Other Income Benefits
Individual
- Benefits are NOT reduced by Social Security Disability Income, workers' compensation, or employer paid time off
Other Income Benefits
Group
- Benefits are reduced by any other income benefits which the employee receives or is eligible to receive (as defined in the policy)