Group Disability Insurance — a disability insurance program that covers members of a natural group, such as employees of a business or members of a union, association, or employer group. A group master disability insurance policy is issued to the plan sponsor, and each qualifying employee is issued a certificate to the master policy, covering the participant's lost wages due to an illness or accident, subject to a maximum monthly payment. Group disability insurance plans usually cost less for participants than individual plans that offer the same benefits.