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Fill Gaps in Group Disability Coverage
by Kimberly Lankford

I have disability insurance through work. Do I need an individual policy, too?

You may. Group disability policies through work do provide some helpful coverage, which protects part of your income if you become sick or injured and can't do your job. But they can leave some giant gaps.

Most employee policies, for example, only cover 60% of your income, and the payouts will be taxable if your employer pays the premiums -- which shrinks your benefits even further.

The coverage limits are generally calculated from your base salary only, not commissions and bonuses. That could leave you with a lot less money than you're used to if you're in sales or another profession that relies on this form of compensation.

Look at your policy or contact your company's human resources director to find out exactly how much income your group policy would provide each month. If that isn't enough to cover your expenses, then consider buying an individual policy.

For more information on what else you should consider, see "Do You Have Enough Disability Coverage?"