What is supplemental disability insurance?

If you are like one of the millions of Americans who unexpectedly becomes unable to work each year due to illness or injury, the last thing you want to worry about is how to continue paying your bills without an income.

If you are looking for more protection, consider adding extra coverage on top of your group long term or individual disability plan. Supplemental disability insurance can be a great add-on for employees who wish to protect a greater percentage of their income, bonuses or commissions. Supplemental disability insurance may be available through your employer, should they choose to offer this type of coverage.

Supplemental disability insurance helps cover the difference between what you’ll receive from your current long-term disability policy and what you’d need to maintain your current lifestyle if you’re unable to work due to injury or illness.

Look at your employer’s group disability insurance policy

A good start to protecting your income is disability income insurance provided through – and often paid for by – your employer. Such a policy typically covers 40-60% of pre-disability salary, often up to a set benefits cap.

Why you may need it?

Nobody thinks it will happen to them, but one in four workers will become disabled during their working years.1 Luckily, there are a few ways to help protect yourself against the financial effects of becoming too sick or injured to work and earn an income.

While group long-term disability insurance can serve as a good foundation for protection, it may not be enough to support you and your family if you became too sick or injured to work – leading to a big gap between income and expenses. Supplemental disability insurance will help cover more of your income.

Get a bigger safety net

Supplemental individual disability income insurance is tailored to your specific compensation and may cover your bonus and other incentives.
 

Individually-owned policy

It belongs to you, even if you change jobs.
 

No medical exam required

Applying for this coverage is easy, because there is no medical exam and you just need to answer three simple yes/no questions.
 

Your coverage and costs remain fixed. 

As long as you make payments on time, your policy can’t be changed or cancelled.

Disability insurance calculator

Figure out how much you may need and what it could cost

Are you an employee? Employees, contact your employer

Are you an employer? Employers, talk to your broker.

Are you a broker? Offer your clients a disability insurance program.

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Disclaimer

1

Social Security Administration Fact Sheet, April 2021

Individual disability income products 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. 

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

2021-124472 20230731