There are several reasons to considering buying Supplemental Disability Insurance.
1) Group Disability policies usually pay 60% of your income in event of disability, and if your employer paid the premiums, the benefits are taxed. Thus, the benefit you actually receive may be approx 45% of your income. Supplemental Disability Insurance is not taxed and can possibly raise this benefit to 70% to 80% of your income.
2) Any group benefit will be lost when you leave the group. Having Supplemental Disability Insurance can be valuable if you no longer qualify for Disability Insurance upon separating from a job and its group benefits.
3) Group Disability coverage is often "own occupation" the first two years, then changes so that you will no longer receive your benefits if you can work at ANY job, not just your OWN type of job. Supplemental Disability Insurance can extend the own occupation feature to last longer than two years. You could also add other features such as a Cost of Living Adjustment rider.
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1) Group Disability policies usually pay 60% of your income in event of disability, and if your employer paid the premiums, the benefits are taxed. Thus, the benefit you actually receive may be approx 45% of your income. Supplemental Disability Insurance is not taxed and can possibly raise this benefit to 70% to 80% of your income.
2) Any group benefit will be lost when you leave the group. Having Supplemental Disability Insurance can be valuable if you no longer qualify for Disability Insurance upon separating from a job and its group benefits.
3) Group Disability coverage is often "own occupation" the first two years, then changes so that you will no longer receive your benefits if you can work at ANY job, not just your OWN type of job. Supplemental Disability Insurance can extend the own occupation feature to last longer than two years. You could also add other features such as a Cost of Living Adjustment rider.