Set for Life provided me with excellent individual care.  Jamie answered all of my questions and guided me to chose the policy right for my needs.

— Dr. Andrea W., Dermatologist, Donalsonville, GA

Disability Insurance for Executives.

Considering disability insurance? Consider the facts.

  • Your most valuable asset is your ability to bring in an income. For executives like yourself, your current and future income is your payoff for all of your years of hard work and accumulated debt.
  • You may be eligible for a group rate or discounts. Depending on the company, you may be able to set up discounts if 2 or 3 people apply for a policy from the same employer.

Group benefits vs. an individual policy

If you work for a large firm or company, you may be offered a group policy. Usually you cannot opt out of taking the policy. Group policies typically offer a limited monthly benefit (60 percent of your income to a maximum amount). If your income exceeds $200k, the percentage of benefits replaced may start to reduce if you have maximum limits on the policy.

Group policies can’t discriminate – they must offer coverage to everyone in the group. Consequently, they often lack the important provisions of a personal policy.

  • Your group policy may require you to be totally disabled and not able to work in any capacity before you can receive any benefit.
  • The benefit may be taxable income to you if the employer is paying the premiums.
  • Your employer may cancel your policy at any time.
  • Even if you have a group policy, it is still important to consider supplementing with an individual policy.
  • Your individual policy is portable and you may take it with you if/when you leave your employer.
  • The policy definitions on an individual policy are usually superior (own-occupation, inflation protection).
  • If you are only partially disabled, your group policy may not pay you.
  • Having an individual policy protects your insurability by purchasing increase options. If your health changes, you may still purchase more coverage in the future based only on financial underwriting.

Companies will typically allow executives to purchase up to $20,000 of individual benefit (subject to financial underwriting). If your income exceeds $500,000, there are additional policies that can be added on top of your individual benefits.

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