Part of our guide: Disability Income Insurance: Solutions, Tools and Guides →
Many advisors skip disability insurance when a client says they’re covered at work. Experienced advisors see it differently: a client with group coverage already believes in income protection. They just don’t know what their plan is missing.
Key takeaways
- Clients with group coverage already understand why income protection matters.
- Group plans often have integration with other benefits, taxable benefits, benefit caps, and no portability.
- A simple review of the client’s plan often shows a large, easily filled gap.
A $125,000 executive with a capped, taxable group plan could add $3,300 a month in tax-free individual coverage.
Why these clients are easier
If a client has disability coverage at work, you don’t need to convince them it’s valuable. Commend them for having it, then offer to review whether it does what they think it does.
What group plans often lack
- Integration: benefits are reduced by Social Security and other income. See how group LTD offsets work.
- Taxable benefits when the employer pays the premium.
- Benefit caps that limit higher earners.
- Excluded bonus or commission income.
- No portability if the client changes jobs.
Example
- Male executive, age 40
- Income: $100,000 salary plus $25,000 bonus
- Group plan: 60% of salary with a $10,000 monthly cap
- Current benefit: $5,000 a month, taxable, and nothing on the bonus
- Additional individual coverage available: $3,300 a month, tax-free
How to run the review
Ask for the plan’s summary or declaration page and some basic client information. We’ll prepare a complete review showing current protection and recommended changes. It’s one of the fastest ways to grow DI production from your existing book.
Frequently asked questions
Can you have individual and group disability insurance at the same time?
Yes. Individual policies are often designed to supplement group coverage, within carrier issue and participation limits.
What does a disability insurance review include?
A look at the group plan’s benefit percentage, cap, taxability, covered income, offsets, and portability, compared with the client’s actual income.
Is individual disability insurance portable?
Yes. It stays with the client if they change jobs, unlike most group coverage.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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