You can have two long-term disability insurance policies if your income warrants the extra coverage. Many policies contain both a percentage and hard dollar cap on monthly benefit payments.
For some high income individuals, the hard dollar cap on the first policy may translate into a low percentage of income replacement. For example, a $5,000 monthly cap would represent 33% income replacement for someone earning $180,000 per year. This happens frequently with group LTD programs.
A second or supplemental policy could bring the income replacement percentage up to 66%.
Yes. Many people have two disability policies. In addition to long term disability policies, some people also own short term disability policies that are designed to fill in the gap between the time you become disabled and when you can start using your long term disability policy (assuming you have this type).
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For some high income individuals, the hard dollar cap on the first policy may translate into a low percentage of income replacement. For example, a $5,000 monthly cap would represent 33% income replacement for someone earning $180,000 per year. This happens frequently with group LTD programs.
A second or supplemental policy could bring the income replacement percentage up to 66%.