Group disability works the same as individual disability plans. It protects an employee from loss of income should he or she become unable to work for a period of time. Most plans permit optional participation in group plans and require a group of 10 eligible people with usually a minimum of two people participating. However, exact numbers vary from carrier to carrier.
Most disability insurance have a waiting period anywhere from 7 to 60 days. During the waiting period you do not get paid while you are disabled.
There are primarily two categories of disability insurance:
Short Term Disability Insurance – As the name suggests, these policies typically pay benefits for short term disabilities, which usually translates into paying benefits anywhere from a few months to a few years.
Long Term Disability Insurance – These policies typically pay benefits from anywhere from a few years to life. The plans typically cost more than short term disability plans.