Many employers provide valuable group long term disability coverage to their employees and the monthly benefit this coverage provides forms a great foundation upon which to build your disability income insurance program. However, that group coverage on its own may not provide adequate coverage in the event in which you became sick or injured.
By design group long term disability plans typically protect up to 60% of your base salary and usually have a monthly payment cap of 5000 to 10000 dollars. Additionally if your group long term disability premiums are paid by your employer the benefits you receive are not income tax free. Rather they are considered gross income and therefore are subject to regular income taxes.