Worksite Short Term Disability Insurance: Group and Individual Options

Young woman looking over documents

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 tax-reduced by Social Security Disability Income, workers' compensation, or employer paid time off
 

Other Income Benefits

Group

  • Benefits are tax-reduced by any other income benefits which the employee receives or is eligible to receive (as defined in the policy)