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How ERISA Disability Plans Differ From Individual Plans

Learn How ERISA plans Differ From Individual Plans With A San Jose ERISA Attorney

Disability insurance can be a lifeline in terms of providing for loved ones if you are unable to work. At Kantor & Kantor LLP, our California disability attorneys represent employees in disability claims and benefit disputes, and while you may hope you will never have to use it, knowing you have this type of insurance in place provides financial security and peace of mind. When choosing between a group disability plan or individual insurance, it is important to be aware of the differences between the two, differences which could impact a future claim.    

Differences Between Group and Individual Plans

Disability insurance may be purchased from an independent provider, the same as any other type of insurance, or through a group policy offered at your place of employment. According to the Consumer Federation of America, the major difference between these policies include the following:

  • Individual disability insurance is more expensive: Your employer may pay a portion of your group disability insurance. If you opt for individual coverage, you will pay the full premium amount yourself.
  • Individual disability insurance is likely to cover more: Group disability plans generally limit the types of disabilities covered. With an individual plan, you have the option of purchasing higher levels of coverage.  
  • Individual disability insurance has no set end date: Individual insurance remains in force as long as you pay the premiums, while group disability plans often terminate with your employment.

How ERISA Protects You Against Problems With Group Policies

While an individual plan may seem like a better deal despite the higher costs, there are advantages to enrolling in a group plan. Group benefits plans are covered under the Employee Retirement Income Security Act (ERISA), which provides federal protections in the event you need to file a claim. If your claim is denied, ERISA requires your employer to have established grievance procedures, as well as procedures under which you may appeal any decision made in your case.

Our Experienced Benefits Claims Attorneys Can Help You

If you have questions regarding a disability claim or have had a claim denied, contact Kantor & Kantor LLP today. Our experienced benefit claims attorneys act as a strong legal advocate on your behalf, fighting for your rights and assisting you in getting the benefits you are entitled to. Call or contact our office online today to discuss the details of your case.   

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