What is the primary difference between individual disability policies and group disability policies?
Individual disability policy premiums are based on the risk factors and other circumstances of the individual being covered. They are not usually related to employment, although employers may, under some circumstances, pay the premiums for a particular employee’s individual disability policy. Group disability policies are usually purchased by an employer as part of an employee benefits package. Group policies are also contracted by private clubs, associations, or other organizations and made available to their members. Group policy premiums are not based on the circumstances of the individual policyholder, but on the general health of the group to be covered.
