To summarize, group disability insurance will cost less since risk of injury is spread among the group of people. At the same time there is a chance that group insurance premium will increase during annual renewal, where individual policy’s monthly premium will remain unchanged.
Individual disability insurance is purchased by individuals in order to insure against illness or injury that may result in time off work and lost wages. Individual disability insurance can act as a stop gap or addendum to an employer-provided group disability insurance plan. Some benefits to an individual plan include the flexibility in policy options that may not be available under a group plan, portability of the policy, tax free benefits if paid from personal income, and the fact that the policy cannot be cancelled without your permission.
Group disability insurance are comprehensive, group plans that are purchased by businesses and companies and provided as working benefits to their employees. Premium payments for the insurance pan are either paid through pay cheque deductions or by employer contributions. Coverage for both short and long term disabilities exist although there are caps to the total benefits amount receivable under the policy.