What is a significant advantage of having disability insurance through an employer?

Disability insurance obtained through an employer offers a notable advantage in that it often results in lower premiums for employees compared to obtaining individual policies. Employers typically have larger group plans that allow them to negotiate better rates with insurance providers. This is due to the pooling of risk among many employees, which can lead to economies of scale that translate into lower costs for each participant.

Additionally, group policies often provide a baseline level of coverage that might not be as accessible or affordable when purchased individually. The cost savings can make disability insurance more attainable, encouraging more employees to secure the financial protection that comes with it.

While factors such as guaranteed acceptance and tax-free benefits are also important features, the essential reason for the lower premiums stands out, making it a more favorable option for many employees looking to protect themselves against potential income loss due to disability.