Disability Insurance Check
Are you covered if you can't work? Calculate your effective disability coverage and the gap vs your essential expenses.
FAQ
Why is group LTD often not enough?
Group LTD usually covers ~60% of base salary, taxable, capped at $10-15k/month. If you make $250k including bonus, your benefit might be $5k/month after tax — far below most lifestyles.
What's the difference between own-occupation and any-occupation?
Own-occupation pays if you can't do YOUR specific job (better for specialists). Any-occupation pays only if you can't do ANY job for which you're reasonably qualified (much harder to qualify). Group policies often shift from own-occ to any-occ after 2 years.
Should I buy supplemental coverage?
Often yes for high earners or single-income households. Supplemental policies are paid with after-tax dollars, so benefits are tax-free. Costs typically 1-3% of salary annually.
What about Social Security Disability?
SSDI exists but is hard to qualify for (must be unable to do any substantial gainful activity, expected to last 12+ months or result in death). Benefit averages ~$1,500/month. Don't rely on it.
Disclaimer. Disability insurance is complex — own-occupation vs any-occupation, partial vs total, pre-existing conditions, mental health limits, definitions of disability. Consult a fee-only insurance advisor before buying.