|
Employee Disability Insurance 
Disability insurance planning is an often overlooked aspect of your life. Are you guilty of assuming that “you have it at work”? There are two major types of disability insurance available to employees; group long term disability (LTD) insurance, and individual disability insurance. A group long term disability insurance plan typically is designed to replace 60% of base salary to a monthly maximum spelled out in the policy. A majority of group LTD plans on the market typically cover 60% of base salary to a maximum of $5,000 a month. Notice that bonus income, as well as commission income is often not covered. Group long term disability insurance benefits are taxable to an employee if the employer was paying the premiums for the coverage. The only way to make up the lost taxes during a claim is to have purchased an individual supplemental disability insurance policy that layers on top of your group coverage before the claim ever happened. Having both group long term disability, and an individual policy allows you to have the maximum income replacement available during a claim. It also gives you the power to know that if your employer ever dropped the coverage, or you ever left your current position, that you would still have your own policy in-force. You can also have the ability to convert a large percentage of your group LTD into your supplemental disability insurance plan when you leave your current employer. Many people earning an income over $100,000 a year are severely underinsured when it comes to group LTD. Since the monthly maximum is usually around $5,000 a month, any income over $100,000 a year should be insured with individual disability insurance layered on top of the group plan. Call 888-513-2300
Shortfalls of Group Long Term Disability Insurance
Benefits of Individual Disability Insurance
Solution We always recommend to people that they supplement their group long term disability insurance with a small individual plan. The individual plan will lock in your insurability for the rest of your working years, and provide you with a higher income replacement should you ever experience a claim. Having both types of coverage takes you from living off of 40% of your income after taxes, to almost 70% of your income after taxes. An individual disability insurance supplemental plan is very inexpensive, but gives you the comfort of knowing that your income will always be protected regardless of your employers plan, regardless of whether or not you ever leave your current job, and regardless of whether or not you ever have a change in health history. Our coverage will grow with your income well above the group limits as well.
Call 888-513-2300
|
Request a Disability Insurance Quote
Common Questions
Guardian Policy Information
Chances of Becoming Disabled
Disability Insurance by Occupation
Request a Quote |
Site Map | Glossary | Contact Us |  |
| Guardian Disability Insurance Brokerage is a general agency of The Guardian Life Insurance Company of America, NY, NY. "Broker Guided Tour" for broker use only. Steven L. Crawford, CDM © Guardian Disability Insurance Brokerage, 2000. |
Privacy Notice | Disclaimer |