Part of our guide: Disability Income Insurance: Solutions, Tools and Guides →
Executives, physicians, and other high earners often have group disability and even an individual policy, yet are still badly underinsured. Carrier issue limits and group caps leave a gap that only a third layer of coverage can fill.
Key takeaways
- Group plans for physicians and executives often cap benefits at a small fraction of actual income.
- Traditional individual DI carriers have maximum issue limits that high earners quickly exceed.
- High-limit excess DI, a third tier, can bring clients earning over $250,000 closer to 65–75% replacement.
Earn $600,000, and group plus individual coverage might replace only a third of it. The third tier closes the gap.
The three tiers
- Group LTD: employer-provided, often 60% of salary up to a monthly cap, typically taxable. See the limits of group coverage.
- Individual DI: portable, usually tax-free benefits, but limited by carrier issue and participation limits.
- Excess or high-limit DI: coverage from specialty markets that sits on top of the first two, often with higher limits and flexible financial underwriting.
Who needs a third tier
Clients earning over roughly $250,000, including physicians, attorneys, accountants, and executives, should generally aim for 65–75% of earnings in total protection. Many can’t reach that with group and individual coverage alone. Bonuses, deferred compensation, and K-1 income are common sources of uncovered earnings. See also closing the income protection gap for high earners.
How we build it
We coordinate all three layers so benefits fit together within carrier participation limits. The plan can be simple or comprehensive depending on the client’s needs.
Frequently asked questions
What is excess disability insurance?
High-limit coverage, often from specialty markets, that sits on top of group and individual policies for high earners.
How much disability coverage should a high earner have?
Many advisors target 65–75% of total earnings, which often requires group, individual, and excess coverage combined.
Why can’t high earners get enough individual disability insurance?
Traditional carriers have maximum issue and participation limits that high incomes quickly exceed.
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.
Connect on LinkedIn →We’re Here to Help
Have a question about what you just read, or a case you’re working on? Tell us a bit about what you need, and a member of the SRS team will follow up with you personally — no obligation, no hassle.
