Do I really need a private disability insurance policy if I have a policy through work?

Yes! Many disability insurance policies provided by your employer only cover you with 60% of your salary with a maximum of $5,000 to $10,000 in benefits. These benefits can be taxable and subject to various reductions. As a result, you’ll get less than 60% of your salary.

More importantly, group policies are governed under the ERISA law and most ERISA Long Term Disability carriers take an adversarial approach to paying group disability claims.

Can you and your family survive on 60% or less of your current income? Probably not. I suggest that you buy a supplemental private disability insurance policy. Protecting yourself is key to avoiding serious debt if you become disabled and these benefits are generally not taxable and the carriers are more likely to pay your disability benefits without a fight.