Why is group long term disability (LTD) coverage( purchased at work) usually less expensive than individually purchased LTD insurance?
• Employer often pays a portion of the premium • Benefits for group coverage is normally coordinated with Worker’s Comp or Social Security benefits. • Individual plans may pay “in addition” to other sources of income. • Individual policies are more likely to include a non-cancelable clause. • Individual policies may have more options in terms of riders to enhance coverage, such as cost of living riders, extended benefit periods, and waiver of premium options. • It is less costly for an insurance company to market, underwrite, enroll and administer group coverage.
Related Questions
- Why is it frequently true that group long term disability (LTD) insurance purchased at work is less expensive than individually purchased LTD insurance?
- Why is group long term disability (LTD) coverage( purchased at work) usually less expensive than individually purchased LTD insurance?
- Is an individual eligible for MCHA if he/she has group insurance, but the coverage is too expensive?
