2 minute read: Just the word “Gap” should get our attention when it comes to protecting our new, hard earned income. Many clients already have group Long-Term Disability (LTD) benefits in place protecting this income if becoming unable to work and produce, but are unaware of the potential gaps in coverage that Group Plans create.

This may resemble your situation: A gap in coverage is typically something like this – There’s the group LTD provided by the employer, and many times limited to 60% of income, up to $7500 per month in benefit. This is very nice for most, but not all.¬† This shortage is crucial to our household income.


  • How long must we wait before collecting Group LTD insurance¬†benefits?
  • What percentage of pay (if any) will we receive during the waiting period?
  • If partial benefits are provided, do we have to be totally disabled during the waiting period?
  • What percentage of our pay will we receive from this benefit?
  • What is the maximum monthly benefit?
  • Is bonus income or incentive pay covered?
  • How long are benefits payable?
  • Will the plan pay benefits if we are working at a reduced capacity?
  • To what extent will our benefit be taxed?
  • To what extent will we be responsible for medical insurance premiums and other benefits previously provided by our employer?
  • Will the benefits be adjusted for cost of living increases?
  • Can we retain the coverage should we change employers?

Answers to all of these questions will provide the details needed to provide a disability-income protection gap analysis.

Final Thought:

Lastly. For those key-people owners in a closely-held firm. Does the Buy-Sell Agreement have a disability buy-out insurance policy providing the financial element necessary to provide what the Agreement dictates? Great question all owners need to know the answer to.

Contact: [email protected]¬†