Beyond Group Benefits: Closing the Disability Coverage Gap for Executives and High Earners

The CDIA / Blog / Beyond Group Benefits: Closing the Disability Coverage Gap for Executives and High Earners

Why Traditional Employer Coverage May Not Fully Protect Executive Income – and What to Consider in Addition

Spontaneity can add excitement to life—whether it’s a last-minute getaway or an unplanned purchase. However, while some surprises can create lasting memories, others, like an illness or injury that leaves you unable to work, can significantly disrupt income and financial stability.

In fact, 42% of Americans worry about being financially prepared if they or another wage earner in their household can no longer work¹. This concern can be even more pronounced for executives and high earners, whose income may exceed standard coverage limits. It also reflects a growing recognition of the role that income protection can play in overall financial well-being.

Income is the foundation that supports the life you’ve built, and protecting it is a key part of long-term financial health—especially for high earners. Many executives and high-earning individuals often have compensation that exceeds the limits of traditional group coverage, like your employer-provided long-term disability insurance, and may require individual disability insurance to help fully protect their income and earning power.

Understanding disability risk and the role of executive disability insurance

Executive disability insurance (executive DI) is an individual policy offered through your employer in addition to traditional group long-term disability insurance (LTD). These policies are portable, which means coverage can continue even if you leave your current company, and are designed to provide extra coverage for key executives and high earners.

This level of protection is especially important given that disability is more common, and often longer-lasting, than many expect. In fact, the average long-term disability absence lasts approximately 34.6 months². These extended absences are often driven by common medical conditions and can significantly impact long-term income and savings.

The most common reasons for short-term disability claims are³:

Pregnancies (22%)  
Musculoskeletal disorders affecting the back and spine, knees, hips, shoulders, and other parts of the body (17%)
Injuries such as fractures, sprains, and strains of muscles and ligaments (11%)
Mental health issues, including depression and anxiety (10%)
Digestive disorders, such as hernias and gastritis (7%)

The most common reasons for long-term disability claims are⁴:

Musculoskeletal disorders (26%)
Cancer (15%)
Injuries such as fractures, sprains, and strains of muscles and ligaments (11%)
Mental health issues (9%)
Circulatory (heart attack, stroke) (9%)

For high earners, understanding these risks underscores the importance of executive DI as a way to help protect income that may not be fully covered by traditional group plans.

How to know if executive DI is right for you

Protecting your income requires a thoughtful review of what’s already in place—and whether it’s enough to support the life you’ve built if the unexpected occurs. If you’re considering taking the next step in protecting more of your income and earning power, you may want to assess some of the factors that currently impact your life.

Assess your current income protection situation: Do you have group LTD in place? If so, how much do you have? Do you know if it’s enough to cover all types of income, like bonuses and commissions?
Evaluate the cost of your lifestyle and your current monthly expenses: Determine how much income replacement you would need in the event of a disability to cover your current living expenses. Do you have kids in college and need to keep up with tuition payments? Do you have a vacation home that you need to pay the mortgage for? All these expenses should be considered.
Determine your options: If there’s a gap between what you need and the group LTD income replacement (after taxes), consider your options for supplementing your group coverage with executive DI coverage.

By evaluating your coverage and considering executive disability insurance, you can help close the income gap that traditional group plans often leave—adding a layer of protection designed to better support you when it matters most.

More than coverage – financial well-being and added confidence for your future

You’ve likely spent years building your career—making sacrifices, taking calculated risks, and steadily earning the success you enjoy today. But choosing not to fully protect your income could be one of the greatest financial risks of all.

Investing in executive disability insurance is an investment in your peace of mind. A conversation with your HR professional can help you explore solutions designed to protect your income—today and well into the future.

1 – Guardian Life Insurance Company of America. (2024) Mind, Body, and Wallet® 2024. Retrieved from https://www.guardianlife.com/reports/mind-body-wallet

2 – Guardian Life Insurance Company of America. (2026). Individual disability insurance. Retrieved from https://www.guardianlife.com/disability-insurance/multi-life-what-is-it

3 – Integrated Benefits Institute, Health and Productivity Benchmarking 2024 (released 4Q 2025), Short-Term Disability, All Employers. Condition-specific results. See https://www.ibiweb.org/tools-analysis/benchmarking.

4 – Integrated Benefits Institute, Health and Productivity Benchmarking 2024 (released 4Q 2025), Long-Term Disability, All Employers. Condition-specific results. See https://www.ibiweb.org/tools-analysis/benchmarking

Individual disability income products are underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and availability may vary by state. This flyer is provided for informational purposes only and should not be considered tax or legal advice. You should consult with your own independent tax and legal advisors regarding your individual situation, including the tax treatment of the policy and policy benefits.

Guardian® is a registered trademark of The Guardian Life Insurance Company of America.

8942784.1 (Exp. 05/28)

Mark Pellicano

Mark Pellicano is Vice President of Distribution Innovation and Distribution Lead for Executive Benefits at Guardian, where he drives strategy and innovation across emerging markets and distribution channels. Since joining in 2024, he has partnered across Group Benefits, Life, Disability, and Wealth to deliver forward-looking solutions that enhance growth and client value.