Group Coverage May Not Be Enough



You may have a group disability plan through your employer, but is it 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.

Additionally, if your employer pays the cost of coverage, your benefits are taxable, which can significantly reduce their value.

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.

Perhaps most importantly, you don’t own your employer-sponsored group coverage.  If you leave your job or your employment is terminated, you can’t take your coverage with you.

An individual LTD plan can be used to fill the gap.  You can tailor individual coverage to meet your needs and circumstances – now and in the future.   If you purchase through the Alum LTD program, the individual policies we offer through Berkshire Life, a subsidiary of Guardian, are non-cancellable and guaranteed renewable so as long as you continue to pay your premiums, they can’t be cancelled, your costs won’t increase, and your plan provisions won’t change.

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Alum LTD is a program name created by the Program Administrator, and not the Guardian Life Insurance Company or its subsidiaries. Individual disability income products are underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA.  BLICOA is a wholly owned stock subsidiary of and administrator for The Guardian Life Insurance Company of America (Guardian), New York, NY or provided by Guardian.  Product provisions and availability may vary by state. Optional riders are available for an additional premium.

2018-59965 Exp. 05/2020