What type of disability insurance is commonly available as a group plan?

Group Disability Income Policies are designed to provide wage replacement for employees who become unable to work due to illness or injury. These policies are typically offered by employers as part of a benefits package, allowing them to cover multiple employees under a single policy. The group nature of this insurance often results in lower premiums compared to individual policies because the risk is spread among a larger pool of insured individuals.

In contrast, an Accidental Death and Dismemberment Policy specifically covers accidents resulting in death or loss of limbs, which does not provide income replacement for disabilities related to sickness or injury. Individual Disability Income Policies are tailored to individual needs and typically require more assessment of health risks, making them less common as a group offering. Business Overhead Expense Policies focus on covering the operational expenses of a business when the owner is disabled, which is not applicable to the broader employee base. Thus, the Group Disability Income Policy stands out as the most relevant option for group plans intended for wage replacement.