Should I purchase Group Long Term Disability Insurance (Group LTD), Individual Disability Insurance (IDI), or both?

What would happen to your savings if you were unable to work after becoming seriously injured or ill? Could you pay your mortgage? Continue tuition payments? How long could you maintain your standard of living without a regular, dependable paycheck?

While not many of us would be able to continue long term, as a Financial Services Institute (FSI) member, you don’t have to. You have access to multiple plans, including Group Long Term Disability Insurance (Group LTD) and Individual Disability Insurance (IDI), to help you build financial stability that can withstand anything the future may hold.

Maximize your coverage with personal and group disability insurance options

The average long-term disability lasts 34 months¹, with many lasting well beyond that. By combining Group LTD and IDI, FSI members are able to insure up to 75% of their income, helping them to be well protected should they experience a disabling injury or illness. This income replacement can help with essential living expenses and bills while also easing mental strain so members can focus on healing and recovery.

How does disability insurance work?

Disability insurance coverage provides a monthly benefit if you become unable to work due to an illness or injury. Once you apply and are approved for a policy, your policy will remain active as long as you pay your premium and meet any other eligibility requirements, such as Association membership for group disability policies. If you become disabled while your policy is active, you can file a claim. The insurance company would review your claim and, pending approval, begin paying a monthly benefit that aligns with your coverage amount following the waiting period.

What are Group and Individual Disability Insurance?

Group and Individual Disability Insurance are two types of insurance policies designed to provide financial protection if you become unable to work due to an illness or injury.

While both Group Long Term Disability (Group LTD) and Individual Disability Insurance (IDI) work to protect your income in the event of a disability, they work in different ways with slightly different advantages and can complement each other to offer additional protection beyond what either can offer alone.

For example, while Group LTD may offer higher amounts of coverage  at a lower premium, IDI offers guaranteed renewal and some features that guarantee your coverage. Below is a quick look at each plan type’s features and benefits.

CoveredAdvisor Group LTD Plan features and benefits

The CoveredAdvisor Group LTD Plan can help strengthen your financial preparedness with:

• Up to $20,000 in monthly benefits
• Competitive group rates
• Occupation-specific disability insurance during the entire benefit period, providing coverage if a disability prevents you from working as a financial professional
• Benefits that increase from 60% to 70% of income after two years on claim
• A 90-day Elimination Period
• Rates that increase at 10-year age bands (ages 30, 40, 50, and 60)
• A Benefit Period that continues until Social Security Normal Retirement age, or age 70
• A Catastrophic Disability Benefit Rider that pays an additional 40% of your insured income, up to $5,000/month
• A Critical Illness Benefit Rider that pays an additional 20% of your insured income, up to $5,000/month for qualifying causes of disability

Why consider supplementing with CoveredAdvisor IDI?

While Group LTD insurance provides a valuable safety net, IDI coverage² offers several features Group LTD does not typically provide, including:

• Up to $5,000 a month on a Modified Guarantee Issue Basis.
• Once issued the rates cannot be increased.
• Non-Cancelable and Own Occupation, you own the policy! Covers you during Total and Partial Disabilities.
• No reduction of benefit during a Total Disability for renewals, fees, etc.

Combining Group LTD and IDI: A comprehensive approach to disability insurance

While you can hold either Group LTD or IDI as standalone coverage, you can create a valuable combination of benefits that provides additional protection for your financial future.

• Help protect more of your income (75% vs. 60%)
• Customize coverage to your individual needs:
  • Under the Group LTD plan, you may elect any coverage amount in increments of $100 up to $20,000, not to exceed 60% of earnings
  • IDI coverage has a minimum benefit of $1,000 and a maximum benefit of $5,000
• Both plans are designed with affordable premiums
• Limit the risk of the non-guaranteed benefits to only a portion of your coverage, because you can choose what percentage of your coverage is Group LTD

FSI members, learn more about the exclusive CoveredAdvisor disability plans available to you.

Not an FSI member? Learn more about membership or join membership today!

Need help? FSI’s advisors are available to explain how the different features work and help you through the decision-making process. Call 888-279-8348 (7 a.m. – 4 p.m. MT) or email us at FSIPlan@gotodsi.com for more detailed plan information.