Story at-a-glance
- Group disability coverage often has major limitations in how and when it pays.
- Most group policies don’t protect your specialty and reduce benefits if you earn income doing something else.
- Coverage isn’t portable—you lose it if you change jobs.
- Benefits are often taxable and may be cut by offsets.
- A personal policy fills the gaps and gives you more control, better protection, and tax-free benefits.
“My Job Has Disability Insurance—Isn’t That Enough?”
We hear this all the time from doctors and dentists:
“I get disability insurance through my employer. Do I really need to buy my own?”
The short answer: Yes. You definitely do.
While group coverage is better than nothing, it comes with big limitations—and those gaps could leave your income and your lifestyle at risk if you ever become disabled.
What’s Wrong With Group Disability Plans?
Here’s what most employer-provided plans don’t tell you:
Weak Definition of Disability
Many group plans only pay if you’re unable to work in any job, not just your specialty. Even if you have an “own-occupation” clause, the policy may cut or stop your benefits if you earn income doing anything else.
It’s Not Portable
Group coverage doesn’t move with you. If you develop a medical condition and then leave your job, you could become uninsurable and lose all protection.
Offsets Reduce What You Get
Your benefit can be reduced if you qualify for Social Security, workers’ comp, or other benefits. Some policies even offset for future earnings.
Benefits Are Taxable
If your employer pays the premium, your disability income is taxed. Combine that with other reductions, and the real payout is often less than 40% of your pre-disability income.
The Plan Can Change or Be Canceled
Your employer or the insurance company can change or drop the coverage at any time—no warning required.
Why a Personal Policy Is a Smart Move
A privately owned individual disability policy fixes these problems:
- True own-occupation coverage that pays if you can’t work in your specific occupation —even if you work in another field.
- Portable—it goes with you, even if you change employers.
- Locked-in rates and benefits that can’t be changed without your consent.
- Tax-free benefits if you pay with after-tax dollars.
- Depending your policy, no offsets from other sources of income or benefits.
Think of it as your income safety net, fully under your control.
Final Thought
Group disability insurance may feel like enough—but it’s often not. The average group plan leaves you with less than 40% of your income, no job flexibility, and no long-term security. A personal policy fills those gaps and gives you the protection you deserve.
Want help reviewing your group coverage and finding the right personal policy to supplement it? Click the button below to request a free comparison.
We’ll show you what’s missing—and how to fix it.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
