Group Coverage May Not Be Enough

A group disability plan provides only a basic level of protection.   Group plans typically replace 60% of your salary, subject to a monthly benefit cap – and often this amount does not include bonuses, commissions or incentive compensation you may receive.   The combined effects of the cap on monthly benefits and the exclusion of bonuses from coverage can create serious shortfalls in protection.

Group LTD plans share some additional disadvantages:

• Benefits and coverage amounts are determined for you. These can be changed, or the plan can be canceled altogether.
• Generally they offer a restricted definition of disability – rarely due they provide true own occupation protection.
• Costs are not guaranteed for more than a year or so, so if they rise dramatically, an employer may decide
  to drop the plan.
• Group payments are offset by payments received from Social Security, Worker’s Comp, or other government programs.