Disability Insurance for High Earners: The Coverage Gap You Don't See

Where group coverage runs out

Group disability typically replaces 60%–70% of income up to a monthly maximum — often $5,000–$10,000 — and is taxable if the employer pays the premium. For someone earning $250,000, a capped, taxable benefit can replace as little as 25%–30% of their real after-tax income. The higher the income, the wider the gap, and the harder the fall if it ever matters.

Individual coverage closes it

A personally owned individual policy tops up the gap group leaves — portable between jobs, paid tax-free, and structured with an own-occupation definition that pays if you can't do your specific work. For specialists, executives, and business owners whose identity and income are tied to a specific role, the definition matters as much as the amount.

• Top up to roughly 70% of after-tax income with an individual policy.
• Insist on an own-occupation definition for specialized roles.
• Use a future-purchase option to raise coverage as income grows.

Buy it while you qualify

Individual disability underwriting is stricter than group, and it's hardest to obtain exactly when income is most at risk — after a health change. High earners who secure a strong policy while healthy lock in the definition, the rate class, and the future-purchase options that let coverage scale with income. We map a client's group plan, quantify the real gap, and structure the top-up so the lifestyle the income supports survives the very event that would end it.