Advantages of a group plan 

• Plan design flexibility. In many cases, employers can elect a plan design that fits their budget and works for their employees. For example, an employer may choose a guaranteed issue plan, which gives employees the option to purchase coverage regardless of their current health condition.
• Lower premiums. Group rates tend to be lower than individual rates.
• Potentially portable. Depending on the plan design, covered employees may be able to take their coverage with them if they leave the company.
• Premium payment flexibility. Premiums can be paid by the employer, the employee, or a combination of the two, using pre-tax or after-tax dollars.
• Tax deductible premiums. You can take pre-tax company-paid premiums as a business tax deduction.
• Recruitment and retention tool. Having group disability insurance in your benefits program helps attract and retain quality employees.

Drawbacks to group disability plans

• Total disability definition. Many group policies require an insured to be totally disabled to receive benefits.
• Taxation of benefits. If you offer the perk of paying the premiums for your employees, any benefit they receive will be considered taxable income for them, which reduces the actual dollar value of the benefit.
• Benefit caps. Benefit amounts are capped, which may make it difficult for you and your higher-paid employees to replace a large enough percentage of income.