Supplemental Long Term Disability Insurance is Disability Insurance that supplements what is provided by your employer. Group Disability policies usually pay 60% of the employee's income, and if the employer pays the premium for the policy, the benefit is taxed, reducing what is paid out to the employee. Supplemental Long Term Disability Insurance can increase this benefit, as well as offer some other features that the group Disability plan does not offer.
A supplemental disability insurance is a personally owned long term disability policy usually purchased to supplement a group employer sponsored long term disability plan.
You are basically "supplementing" your existing group plan with a personally owned policy. The reason this is necessary is because most group plans only cover 50- 60% of an employees income. A supplemental policy will provide additional coverage in addition to the group plan.
The amount of supplemental disability coverage you can purchase is limited based on the insurance carriers guidelines. This is determined by the amount of your income your group plan covers and weather or not you pay for your group plan or your company does.
As a general rule, most carriers won't let you insure more than 70% of your gross annual income.
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You are basically "supplementing" your existing group plan with a personally owned policy. The reason this is necessary is because most group plans only cover 50- 60% of an employees income. A supplemental policy will provide additional coverage in addition to the group plan.
The amount of supplemental disability coverage you can purchase is limited based on the insurance carriers guidelines. This is determined by the amount of your income your group plan covers and weather or not you pay for your group plan or your company does.
As a general rule, most carriers won't let you insure more than 70% of your gross annual income.