While group plans tend to be a bit more affordable they’re not really yours to keep. In this economy many are seeing their benefits being reduced or cut altogether by their employers as they tighten their belts – not to mention those who have lost their benefits altogether because of layoffs. Considering that you can’t get disability insurance if you don’t have good health and that many develop disqualifying conditions the older they get, it really is risky to have a disability policy that is at your employer’s mercy.

Something to point out is the difference in tax treatment of disability plans (at least in the US). Group insurance plan premiums are generally deducted from taxes, which makes the benefits taxable. However, most individual plans are paid with after-tax money, making the benefit from the insurance plan income tax-free.

This is especially worth considering if you are in a higher tax bracket or would need to replace a larger amount of your income in the event of being sick or hurt. For those folks, they should generally still take the insurance plan from their employer, but also consider adding on a supplementary individual policy to make up the difference paid out to the tax man.