I have Group LTD at work. Do I need individual coverage?

Probably yes, especially if you're a high earner. Group LTD typically caps at $5,000-$10,000/month and benefits are taxable if employer-paid. An individual 'Supplemental' policy fills that gap with tax-free, portable coverage you own regardless of employment.

Chicago Disability Insurance: Secure Your Income Today

The "Surgeon vs. Greeter" Test

Why "True Own-Occupation" Matters

Critical Concept: A surgeon injures their hand. They can't operate. A cheap policy says: "You can still be a Walmart Greeter, so no payout."

A True Own-Occupation policy pays you full benefits even if you take another job. MC Chicago Insurance only recommends policies with this gold-standard language for professionals.

Policy Essentials Checklist

True Own-Occupation (Vital for Professionals)
Non-Cancelable (Premium Rate Lock)
Mental/Nervous Coverage (Burnout Protection)
Student Loan Riders (For Residents/Grads)
Catastrophic Disability Benefit
Business Overhead Expense (Pays the Rent)

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Who Needs Disability Insurance?

The Self-Employed

The Reality: You have no paid sick leave. If you break your leg or get cancer, your income hits $0 immediately. A disability policy becomes your personal "HR Safety Net"—replacing your paycheck when you physically can't work.

High Earners (Tech/Law/Finance)

The Group Gap: Your employer's Group LTD is taxable and usually caps at $5k-$10k/month. If you earn $300k, that leaves you massively exposed. You need a "Supplemental Policy" to fill the gap—owned by you, portable, and tax-free.

Business Owners

The Tax Trap: Warning: If the business pays your premium and deducts it, your disability benefits become TAXABLE. We structure it so you pay with post-tax dollars—making your benefits Tax-Free when you need them most.

Key Insight: 1 in 4 workers will experience a disability lasting 90+ days before age 65. This isn't about catastrophe—it's about protecting the asset that funds your entire lifestyle: your ability to earn.

The Illinois Advantage: Mental Health Parity

Professional addressing mental health and burnout

Burnout Is Now a Covered Condition

Illinois law now mandates stronger parity for mental health conditions. This means modern policies are better at covering Burnout, Anxiety, and Depression claims than older policies that often capped these at just 24 months. If your policy is 10+ years old, it may have outdated mental health limitations.

Mental/Nervous Coverage

Modern policies cover burnout without arbitrary time caps.

Policy Review

We audit old policies for outdated mental health exclusions.

Illinois Parity Law

State mandates ensure equal treatment for mental health claims.

Comprehensive Claims

Physical and mental conditions treated equally under modern policies.

Business Overhead Expense (BOE) Insurance

Who Pays the Rent If You Can't Work?

If you're disabled, your personal disability policy replaces your income. But who pays the office rent, employee salaries, utilities, and equipment leases? Business Overhead Expense (BOE) Insurance pays your fixed business costs while you recover—ensuring you have a business to come back to.

BOE Covers These Expenses

Rent/Mortgage: Office, clinic, or storefront lease payments.
Employee Salaries: Keep your staff paid while you recover.
Utilities & Insurance: Electric, internet, liability premiums.
Equipment Leases: Medical equipment, vehicles, technology.

Personal DI vs. Business Overhead

Personal Disability Insurance: Replaces your personal income—pays your mortgage, groceries, and family expenses. Owned by you, benefits are tax-free if you pay premiums.

Business Overhead Expense: Replaces your business expenses—pays rent, staff, and operating costs. Owned by the business, premiums are tax-deductible, benefits are taxable (but offset by expenses).

Medical Residents: Lock It In Early

GSI (Guaranteed Standard Issue) for Residents: If you're a resident at Rush, Northwestern, or UChicago, buy your policy before you graduate. You get "training rates" and lock in your health status before the stress of being an Attending raises your blood pressure or triggers an excludable condition.

Why Buy During Residency?

Training Discounts: 10-20% lower premiums
Health Lock: Insure before conditions develop
Future Increase Options: Grow coverage as income grows
Student Loan Rider: Covers loan payments if disabled

Specialty-Specific Coverage

Surgeons/Proceduralists: True Own-Occupation is non-negotiable. If you can't operate, you get paid—even if you teach or consult.

All Physicians: We work with carriers that specialize in physician disability—Guardian, MassMutual, Principal, and The Standard—to get you proper specialty definitions and elimination periods.

Elimination Periods: Your "Deductible"

Think of This as Your Waiting Period

The Elimination Period is how long you must be disabled before benefits begin. It's the disability insurance equivalent of a deductible. You can choose a 90-day waiting period to lower your premiums significantly. If you have 3 months of emergency savings, don't pay extra for a 30-day wait—you'll save hundreds per year in premiums.

30-Day: Highest Premium 60-Day: Moderate Savings 90-Day: Best Value

Premium Impact Example

30-Day Wait: ~$250/month
60-Day Wait: ~$200/month
90-Day Wait: ~$150/month
Savings: $1,200/year with 90-day

The Application Process

1. Income Documentation

We'll need tax returns or pay stubs to calculate your maximum benefit amount (typically 60-70% of income).

2. Medical Underwriting

A brief health questionnaire. Some policies require a paramedical exam. We shop carriers to find the best fit for your health profile.

3. Policy Delivery

Once approved, your policy is active. Non-cancelable means your rates and terms are locked for life.

Common Questions

It depends on who pays the premium. If you pay with after-tax dollars, your benefits are tax-free. If your employer pays the premium (or you pay with pre-tax dollars), benefits are taxable income. This is why we often recommend business owners pay premiums personally—to keep benefits tax-free when they need them most.

The gold standard. "True Own-Occupation" means the policy pays if you can't perform your specific job, even if you're able to work in another capacity. A surgeon who can't operate but can teach would still receive full benefits. Cheaper policies use "Any Occupation"—meaning they won't pay if you can do any job you're reasonably qualified for. For professionals, Own-Occ is essential.

Insurance companies typically limit individual disability coverage to 60-70% of your gross income. This is intentional—insurers want you motivated to return to work. If you have group coverage through an employer, individual carriers will coordinate to ensure your total coverage doesn't exceed these limits. We calculate the optimal amount based on your total compensation.

Short-Term Disability (STD) typically covers 3-6 months after a brief waiting period. It's often provided by employers. Long-Term Disability (LTD) kicks in after STD ends and can pay until age 65 or 67. For most professionals, Long-Term Disability is the critical coverage—it protects against the catastrophic risk of years without income.

Yes, but coverage varies significantly. Older policies often limited mental health claims to 24 months. Modern policies—especially those compliant with Illinois mental health parity laws—provide better coverage for anxiety, depression, and burnout. We specifically review the "Mental/Nervous" language in every policy we recommend.

A Non-Cancelable policy means the insurance company cannot change your premiums or cancel your coverage as long as you pay your premiums. This is the strongest contract language available. "Guaranteed Renewable" is weaker—it means they can't cancel, but they can raise rates for your entire class. We recommend Non-Cancelable for maximum protection.

Probably yes, especially if you're a high earner. Group LTD typically caps at $5,000-$10,000/month and benefits are taxable if employer-paid. If you earn $200k+, that leaves a massive gap. An individual "Supplemental" policy fills that gap with tax-free, portable coverage you own regardless of employment.

This rider allows you to increase your coverage in the future—without medical underwriting—as your income grows. It's critical for young professionals. A resident earning $60k today might earn $400k in 5 years. The Future Increase Option lets you grow coverage without proving you're still healthy.

For most professionals, we recommend "To Age 65" or "To Age 67" benefit periods. A 5-year benefit period is cheaper, but the real risk is a permanent disability at age 45 that prevents you from ever working again. The long benefit period protects against that catastrophic scenario.

Absolutely. Self-employed individuals arguably need it most—there's no employer sick leave to fall back on. Underwriting requires proof of income (tax returns, P&L statements), and carriers will issue coverage based on your average earnings over 2-3 years. We work with carriers experienced in underwriting business owners and freelancers.

Chicago Disability Insurance