Individual disability insurance is generally purchased directly by an individual, whereas group disability insurance may be offered through an employer. Both types of coverage provide disability support if the policyholder has an illness or injury that prevents them from working.
The differences between individual and group insurance depend on the precise language of the individual plan. Individual insurance may cost more and be more customizable than group insurance and may offer a higher payout.
Differences and Similarities Between Individual and Group Disability Insurance
The primary difference between individual disability insurance and group disability insurance is just as the name implies. One is a policy that covers an individual and is purchased specifically for that individual. The other is a group policy that is more general in nature and applies to all eligible employees at your work.
Individual Disability Insurance
People may purchase individual disability insurance when they are self-employed, work for a company that does not offer a group policy, or want to purchase additional coverage in addition to their group policy.
Individual policies may offer more features and benefits than a group policy. They may be tailored to the policyholder’s needs and may cost more than a group policy.
Group Disability Insurance
Group disability insurance covers all eligible employees at a business. It may be paid for by the employer as a perk to workers, or the cost may come out of the employee’s check. Long-term group disability plans may be designed to work in sync with short-term disability or other benefits.
If you change jobs, lose your job, or your company opts to change carriers, you may not be able to maintain the coverage you like on a group insurance plan.
How Disability Insurance Benefits Work
According to the Financial Consumer Agency of Canada, long-term disability insurance policies typically pay out to replace about two-thirds of the income you could earn at your job. However, each plan is slightly different. Some plans may set a limit for the number of years you are able to draw benefits. Other plans may stop when you reach a certain age.
Many disability plans begin with a standard that the employee may not be able to perform the duties of their current or most recent occupation to receive benefits. After two years, this standard may shift to any job. In this case, you may only be able to continue receiving benefits if you show that your condition prevents you from maintaining a job in any occupation, regardless of the occupation you held prior to starting your disability claim.
You May Challenge a Denial of Disability Benefits
If your group or individual disability insurance carrier denied your claim for benefits, you may be able to take action to challenge the denial. If you prove you meet the qualifications for benefits, you may be able to overturn a denial, negotiate a settlement, or take the case to court or even trial.
A disability lawyer may be able to review the fine print of your insurance policy and defend your right to compensation against your insurer or in court. There are time limits that apply to these cases, though. Based on the Limitations Act, a legal team may only have two years from the date of your denial to file a lawsuit. In some cases, this time limit may be as short as one year.
Talk to Our Legal Team About Your Disability Denial
If you received a denial based on your group or individual disability insurance coverage, a lawyer from Preszler Injury Lawyers may be able to review your policy and gather new evidence in your case. We may be able to put our resources to your defense by getting second opinions or testimony from medical and vocational experts.
Our team handles negotiations, strategy, and legal deadlines when we represent you. If an insurer who unfairly denied you disability benefits refuses to make a fair settlement, we are not afraid to challenge them in court.
Call 1-800-JUSTICE to talk to a representative of Preszler Injury Lawyers today. Initial consultations are free. Our firm operates on a contingency-fee-basis, meaning our clients do not pay up-front for our services. We only take a payment if our clients receive a settlement or a ruling in court.