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In many cases, yes — and the gap is often larger than people expect.

When an employer pays the LTD premiums, benefits are generally taxable as ordinary income. Once taxes, monthly benefit caps, offsets, and excluded pay are factored in, actual take-home replacement can be significantly lower than the stated 60% — especially for higher earners.

Many group plans cover base salary only, so bonuses, commissions, and other variable pay may be excluded. Many also switch to an “any occupation” definition after 24 months.

An individual supplemental policy can help fill those gaps with portable coverage you own personally, and benefits that are generally income-tax-free when you pay the premiums with after-tax dollars. Check your income gap to see your estimated numbers.

Group LTD usually ends when you leave the employer, and some plans offer only limited conversion options. If your health has changed by then, getting new coverage can be harder or more expensive.

An individual policy goes with you — to a new job, a new practice, or your own business — as long as you keep paying the premium.

Social Security Disability Insurance (SSDI) pays disabled workers an average of about $1,630 per month (2026 estimate), after a 5-month waiting period. Many applicants are denied at first and must appeal, which can take a long time.

SSDI also uses a strict definition — you generally must be unable to do any substantial work, not just your own job.

Individual disability insurance pays based on your own income, can use an own-occupation definition, and begins after the elimination period you choose.

Workers’ compensation only covers work-related injuries and illnesses. If you’re diagnosed with cancer, have a heart attack, or are hurt off the job, workers’ comp generally pays nothing.

Most long-term disability claims are caused by illness, not accidents. Disability insurance covers you whether the disability happens at work or not.

Own-occupation means the policy pays if you can no longer perform the duties of your specific profession — even if you could work in a different role.

Example: a surgeon who loses the use of a hand can no longer operate. Under true own-occupation coverage, they can still be considered disabled — even if they could teach or consult.

Any-occupation is much stricter: you must be unable to do any job you’re reasonably suited for. Many group LTD plans start with own-occupation for 24 months, then switch to any-occupation. That change is one of the most important things to understand about workplace coverage.

Individual policies with own-occupation language can provide much stronger protection for professionals whose income depends on a specific skill set. Definitions vary by carrier and policy.

The elimination period is the waiting period before benefits begin — like a deductible measured in time instead of dollars.

Common options are 30, 60, 90, or 180 days. A longer elimination period lowers your premium but means you’ll need savings to cover the gap. The right choice depends on your emergency fund and how quickly you’d feel the pressure if your paycheck stopped.

The benefit period is how long monthly payments can continue once you qualify. Options range from short periods such as 2 or 5 years to coverage that runs to age 65, 67, or — with some carriers — age 70.

The average long-term disability claim lasts about 34.6 months, but serious conditions can last much longer. A benefit period to age 65, 67, or 70 is designed to protect you all the way to retirement, while a shorter 2- or 5-year period can make sense — and cost less — if you’re closer to retirement or mainly want to bridge a temporary gap. We compare options so you can find the right balance for your budget.

Noncancelable means that as long as you pay your premiums, the carrier can’t cancel your policy, change its provisions, or raise your premium during the guaranteed period.

Guaranteed renewable means the carrier can’t cancel your policy or change its provisions, but it may raise premiums for an entire class of policyholders — not just you.

Noncancelable coverage typically costs a bit more, but it locks in your rate.

It depends on who paid the premiums. If your employer paid them — as with most group LTD plans — benefits are generally taxable as ordinary income.

If you pay the premiums with after-tax dollars on an individual policy, benefits are generally income-tax-free. That difference alone can be worth hundreds of dollars a month during a disability.

This is general information, not tax advice — consult your tax professional about your situation.

No — and this is where good policies separate from okay ones. Two policies with the same monthly benefit can pay very differently at claim time because of the contract language.

Key differences include the definition of disability, how and when residual benefits start, mental/nervous limitations, how the benefit grows with inflation, and which riders and unique provisions are included.

That’s why we compare the actual policy terms side by side — not just the price.

Both pay when you can still work but your ability or income is reduced — they just measure it differently.

Partial disability is usually based on your ability to perform some of your duties or work part-time, and often pays a flat percentage of the benefit for a limited time.

Residual disability is based on your loss of income. If an illness or injury reduces your earnings, it pays a proportionate share of your benefit. Many recoveries are gradual, so this is one of the most valuable features to compare.

This is where contracts differ the most. Points to compare:

When it starts: Many policies begin residual benefits once you lose a minimum amount of income — commonly around 15% to 20%. Some require a period of total disability first; stronger policies do not.

How much it pays: Usually a percentage of your monthly benefit equal to your percentage of lost income. Many policies treat a loss of about 75% to 80% or more as a full loss and pay the full benefit.

Early-claim protection: Some pay at least 50% of the benefit for the first several months, even if your income loss is smaller.

Recovery benefit: Some keep paying after you return to full-time work if your income hasn’t fully recovered.

Exact thresholds and durations vary by carrier and contract.

A cost-of-living adjustment (COLA) rider increases your monthly benefit each year while you’re on claim, helping your benefit keep pace with inflation during a long disability.

Riders differ in the increase rate (often tied to CPI, with a cap such as 3% to 6%), whether increases are simple or compound, and how long increases continue. A compound COLA can make a big difference on a claim that lasts years.

These let your coverage grow before a claim, while you’re healthy and working.

An Automatic Increase Rider (AIR) raises your benefit automatically for a set number of years — often around 3% per year — without new medical underwriting. You can usually decline an increase.

A future increase option lets you buy additional coverage later as your income rises, typically with financial proof but without new medical underwriting. These are especially valuable for residents, early-career professionals, and growing business owners.

Many policies cover mental and nervous disorders and substance-related conditions, but limit benefits for them — commonly to 24 months over the life of the policy, unless you’re hospitalized.

Some carriers offer longer or no limitations, or riders that adjust the limit. Because mental health is a growing cause of claims, this is an important term to compare.

A catastrophic disability rider pays an additional monthly benefit on top of your base benefit if you suffer a severe disability — typically loss of the ability to perform two or more activities of daily living, severe cognitive impairment, or a presumptive loss such as sight, hearing, speech, or use of limbs.

Severe disabilities often bring higher costs for care and home changes, and this rider helps cover them.

Beyond the core benefit, some carriers offer provisions that can add real value — availability and terms vary by carrier:

Family care benefit: helps if you need to reduce work to care for a seriously ill family member.

Student loan rider: helps make student loan payments while you’re disabled — popular with physicians, dentists, and other professionals.

Unemployment premium waiver: may waive your premiums for a period if you involuntarily lose your job.

Others include retirement contribution protection, return-of-premium options, and benefits for transplant or organ donation. We’ll show you which provisions each carrier includes in your comparison.

Often, yes. A past decline or a health condition doesn’t automatically mean you can’t be covered — it means you need someone with access to the right markets.

We work with simplified issue products that may consider many common conditions with no medical exam or blood work, along with specialty markets — including Lloyd’s of London — for high-risk occupations and hard-to-place cases. Approval is always subject to underwriting.

In our quote center, choose the closest match or “Other / Not Listed” and continue — or call 866-812-4777. Carriers classify occupations by your actual daily duties, so we’ll help you find the right classification. Being listed doesn’t guarantee eligibility, and not being listed doesn’t rule you out.

Yes — and self-employed people often need it most. Without employer-provided group LTD, your income has no built-in safety net.

The main consideration is income documentation. Carriers typically review tax returns to set your insurable income, so write-offs that lower reported income can also lower how much coverage you qualify for. We help self-employed clients navigate this, including options for variable income.

Often, yes. Many carriers issue coverage into your late 50s and 60s, with benefit periods that typically run to age 65 or 67. Premiums are higher than for younger applicants.

The final working years are often when income is highest and retirement savings are most exposed — a disability then can permanently change your retirement plans, so coverage is worth reviewing.

Yes. Beyond personal income protection, there are business-focused policies such as business overhead expense coverage (helps pay rent, payroll, and other ongoing costs while you recover), loan protection (helps keep loan payments current), and disability buy-out coverage for partners.

These can help keep your business running — and your lender satisfied — if you can’t work.

Yes — and they’re often underused. When several people apply together — colleagues, employees, or partners — many carriers offer a multi-life discount on each individual policy. No formal group plan is required, and each person owns a portable policy.

For eligible larger groups, Guaranteed Standard Issue (GSI) programs may allow coverage without individual medical underwriting. Requirements vary by carrier.

If you’re a business owner, employer, or part of a professional association, it’s worth a conversation.

Individual disability insurance often costs roughly 1% to 3% of annual income, but your actual premium depends on your age, occupation, health history, benefit amount, elimination period, benefit period, and riders.

The most accurate way to know is to run your profile across multiple carriers — which is exactly what our free quote does. You see real numbers before committing to anything.

It depends on the underwriting path. With simplified or accelerated issue products, qualified applicants may be approved in days.

Fully underwritten policies typically take several weeks, depending on the carrier, health history, and benefit amount. We identify your likely path before you apply, so there are no surprises.

No fee to you. Like other independent insurance agents, Greg is paid a commission by the carrier when a policy is issued. Premiums are set by the carrier and filed with the state — working with an agent doesn’t add to your cost.

What you gain is access to multiple carriers, guidance on which policy fits your situation, and ongoing service from someone who knows your file.