Hassle-Free Health Coverage: Disability Income

Group disability income coverage provides for loss of income benefits due to a disability caused by an accident or sickness. The amount of benefits paid is usually a percentage of your weekly or monthly compensation; such as 60 percent or 70 percent. This is intended to encourage you -- the disabled employee -- to recover and return to work.

Benefits are payable following the policy's elimination period (EP). The EP is a waiting period during which you must be totally disabled as defined by the policy. An EP can be 30 days or longer.

Group benefits may be short-term or long-term. Short-term benefits are usually payable for up to one or two years -- though usually one year. Short-term policies usually have short elimination periods such as 15 or 30 days.

Long-term disability (LTD) benefits are usually paid out for longer benefit periods such as five years or until you turn 65. Generally, LTD policies have longer elimination periods, such as 90 or 180 days.