A disability is a condition that incapacitates a person in some way so that he or she cannot carry on normal pursuits. The definition of “disability” in disability income policies varies substantially and should be carefully examined. Disability may be total, partial, permanent, or temporary, or a combination of these.

Group disability insurance is provided to groups of people. It involves the substitution of group selection, the use of experience rating, and the use of a master insurance contract. These aspects of group insurance yield lower administrative costs than would individual policies written for members of the group.