Disability Income Myth #3: “I have enough disability coverage through my employer.”


Many consumers don’t understand the need for income protection.  This week, I look at one area which generates a lot of confusion when evaluating the need for or amount of income protection required- Group Long Term Disability.  #IncomeProtectionMatters  #IDImyths.

Group Long Term Disability (LTD) insurance is a great start but may not be enough.   Most plans only cover 60% of gross income and benefits are usually taxable.  Could your clients survive a 58% pay cut (after taxes) if they became disabled?  Individual disability income protection plans work with existing group coverage to replace more of your clients’ income, helping to maintain their standard of living.

Additionally, what would happen if they lost the group disability benefits (due to change of employer, cancellation of coverage, etc.)?  It may make sense to purchase individual disability insurance now rather than later when it can be more expensive or not an option due to health reasons.

Think of this coverage as income or paycheck protection.  If you clients become too sick or hurt to work, disability insurance benefits can work like a monthly “paycheck” to help maintain their standard of living. 

Disability Income Protection Doesn’t Have to be Difficult. 

BUA offers a variety of personal income and business planning solutions from top carriers for a wide range of occupations.  We offer advisor product and market training programs as well as full underwriting and policy service support.  Give me a call to discuss income protection options for your clients.

About the Author

Jim LaFleur is the Vice President of Business Underwriters Associates, Ohio’s largest Brokerage General Agency, which does business throughout the United States. He began his insurance career in 1996, after earning a degree in Psychology from Kent State University.  A passionate proponent of income protection, he believes the first step in any financial plan is protecting the client’s most valuable asset – the ability to earn a living.  He has helped hundreds of insurance professionals provide thousands of clients with protection solutions designed around the specific needs of each client.