Group Plans
The most common kind of disability insurance, group plans are typically offered through your employer. The lowest tier of group coverage is extremely affordable, so that’s a big plus, but benefits vary greatly. Consider that group plans typically don’t come close to replacing your full paycheck, with a reimbursement rate of about 60% being typical.
Furthermore, group plans often place a monthly or yearly cap on the dollar amount you can be paid, or set a maximum time frame for benefits that could be as little as two years. Because of these drawbacks, it’s important to read the fine print on group plans because they may not help much if illness strikes.