Group long-term disability may not be enough!

Employer-paid group LTD may not cover all of your income needs while sick

The other day I was reading an eye-opening report about clients that had long-term disability insurance claims, who had the coverage offered by their employer.

Although they felt they had adequate coverage before going on claim, they have discovered that the benefits were not enough once the medical bills started coming in, spouses took time off from work in order to help their spouse that was ill, had to pay for babysitters while they were going in for treatments, and many other related expenses not covered by the health insurance.

Group disability plans usually cover about 60% of your base income, not including bonuses or commissions. Also, group benefits are normally taxable, if the premiums were paid by the employer. So, you end up with only about 40% of your base income when you’re sick.

Out of over 400 employees interviewed, 42% said they still had difficulty paying their mortgage or bills, even with the benefits received from the employer-sponsored disability insurance! Additional 41% of those interviewed said they would have had difficulties paying their bills if they wouldn’t have had the disability insurance offered by their employer, and that they need additional insurance to supplement the benefits their employer offered.

Over 88% said that employers should do a better job explaining the disability benefits they offer, because they thought they were insured at 100% of their income in case they become sick or hurt, which is not the case.

How to supplement the employer-paid group Long-term Disability (LTD) Insurance? (up to 100% of your income)

Anyone can get personal disability insurance on top of the group plan offered by their employer, in order to cover more of their income in case of incapacity to work due to an illness or accident. Any employee or self-employed individual can qualify for individual supplemental disability insurance, whether they are receiving a group plan from their employer or not. By stacking up group disability and individual plans, one can cover up to 80% or even up to 100% of their income in some catastrophic illness situations.

How much does individual disability insurance cost?

A good comprehensive plan that protects your income and your occupation should cost about 2% of your annual income and protect 60-100% of your earnings.  The good thing is that once you get an individual disability insurance plan, premiums don’t increase as you get older even if your health deteriorates. So, the younger you are and healthier you are when putting a disability plan in place, the cheaper your premiums will be for the rest of your life! You can even keep your individual policy in place if you change employment or if you become self-employed.


Call now to find out how to protect your income in case you get sick and can’t work. Call 877-LIFE-GUY or email

Author: LifeGuy

Daniel LifeGuy Dragan has 126 posts in this blog.

Daniel is a dedicated insurance expert with a focus on helping individuals, families and small businesses avoid financial disasters with Life Insurance products, Paycheck Protection (Disability Insurance), Retirement planning, Cancer and Critical Illness Insurance, executive and business protection plans. With his comprehensive knowledge and experience in financial protection, Daniel can help save money as well as get all your insurance premiums returned to you if you didn't use any of the benefits. "Return of Premium" insurance is one of Daniel's strengths and along with his personal approach to his customers' needs, one of the main reasons his clients are referring him to friends, family and business partners. Daniel offers free financial consultations and can be reached by email at or phone: (239) LIFE-GUY or 239-466-4466

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