top of page

Group DI - The Great Coverage Gap

Updated: Aug 4, 2019

The majority of group disability policies are paid for by the employer and therefore results in a taxable benefit paid to the employees. Another thing to take into consideration is that if you are disabled – you may no longer be covered by group health insurance. This can add a unexpected added expense.

Group Disability can be a good base – but it most likely won’t be enough. By adding an individual disability policy to a financial plan can fill any of the coverage gaps one may have. An individual making $100k takes home roughly $76k per year. If they have a group disability policy they are only receiving $60k in benefits – after taxes on that benefit they roughly will roughly receive $42k in benefit. That is an income reduction post disability of $34k per year or roughly 55% reduction in their take home pay! The majority of financial advisors and insurance agents in this country don’t realize this!

Our firm can help you tap into this marketplace with our Disability Insurance Audit Platform.

A result of a study from the Council of Disability Awareness revealed a few years back that roughly 1 in 3 don’t have adequate income protection. Out of 140 million working individuals – 50 million don’t have any form of coverage. Roughly 70 million have this type of coverage through their employer, and roughly 6 million have actually received adequate protection by working with an advisor!

Contact our team to get started!

32 views0 comments

Recent Posts

See All

What is a Residual Rider?

This rider can be one of the most valuable riders attached to a policy. It determines a payout based on a partial disability vs. a total disability. From a look at claims, the majority of disabilities

Student Loan Debt and Disability Income Insurance

If you become disabled while in school and have to drop out, disability insurance benefits can help you pay your student loans! This is information that both students and parents should be aware of. I


Commenting has been turned off.
bottom of page