Disability Insurance for Asset Managers

Yes, most asset managers need individual disability insurance even with an employer group plan, because a group long-term disability plan typically insures only base salary and caps the monthly benefit at a flat dollar ceiling unrelated to occupation class or income growth. An asset manager whose management-fee income, deferred compensation, or independent advisory business income makes up a growing share of total pay is underinsured by a group plan built around a fixed salary figure. Group coverage also ends the day employment ends, while an individually owned policy stays in force through a firm change or a move to an independent practice. Reviewing what a group plan actually excludes is the first step toward closing that shortfall.

See Where Your Group Coverage Falls Short

True own-occupation coverage is not delivered the same way at every carrier, and the difference changes what a policy actually promises. Delivery splits the five carriers Set for Life Insurance represents into three groups, built into the base contract with no election at Principal, a named choice among definitions at Guardian and Ameritas, and a separately priced Own Occupation Rider at MassMutual and The Standard. No carrier’s guide names Asset Manager as a distinct occupation title, so the definition applies through the nearest classified title, compared in full below. Two quotes carrying the same monthly benefit can be structurally different policies depending on which path delivered the definition, the check an asset manager needs to make before choosing one.

Own Occupation Definition by Carrier for Asset Managers

	Ameritas Life Insurance Corp. 4501NC	Guardian Berkshire Life Insurance Co. of America ICC16 18ID, Provider Choice	MassMutual Massachusetts Mutual Life Insurance Co. ICC15-XLIS-RC, Radius Choice	Principal Principal Life Insurance Company ICC22-800-IDI, Income Protector	The Standard Standard Insurance Company B180(7/17), Platinum Advantage
How own occupation coverage is delivered	Base contract, choice of true or modified own occupation forms	Base contract, named choice of three definitions	Not in the base definition. A separately priced Own Occupation Rider	Built into the base definition	A separately priced Own Occupation Benefit Rider
The clause that changes the definition from true to modified own occupation	Modified form adds “and you are not working in any occupation for wage or profit” (specimen)	Modified form adds “and You are not Gainfully Employed” (specimen)	Own occupation only exists once the rider is elected and itemized on the policy specifications page (specimen)	No such clause. Working in another occupation does not end the benefit (specimen)	Modified form adds “you are not engaged in any other job or occupation for wage or profit” (specimen). The own occupation form drops this clause entirely
Total disability definition, verbatim from the specimen	“Totally Disabled means that, solely due to sickness or injury, you are not able to perform the material and substantial duties of your occupation.”	“Totally Disabled means that, solely due to Injury or Sickness, You are not able to perform the material and substantial duties of Your Occupation” (base Own Occupation choice; the modified choice adds the Gainfully Employed clause above)	Not published in the base definition. The rider supplies the own occupation standard once elected	“Totally Disabled even if You are Working in another occupation as long as You are unable to perform the Substantial and Material Duties of Your Own Occupation.”	Rider language supplies the own occupation standard once elected; the base modified-form definition is quoted in the row above
Does reaching the top occupation class remove the rider requirement	No separate rider to remove; the guide names Fund Managers and Portfolio Managers directly at occupation class 5A ($150,000/yr, 2 years), and separately names Investment Advisors under a credential-adjacent bucket reaching 5A at $75,000/yr with 5 years’ experience. The general own occupation definition applies uniformly under either path	No separate rider to remove; Guardian’s own numeric scale names “Banks – Portfolio Manager” at Class 5, and lists Financial Advisor at a flat Class 4 with no published income-tiered path to a higher class. All three definition choices are available regardless of occupation class or path	Yes, still required. MassMutual names Portfolio Manager directly (5A at $200,000/yr, 2 years) and separately names Financial Planner under a designation-gated bucket that caps at 4A regardless of income or credential. Neither path removes the Own Occupation Rider requirement, and the advisory path cannot reach the income tier the trading-adjacent path can	No separate rider to remove; Principal names Mutual Fund Manager directly with the identical three-tier scale as Portfolio Manager and Hedge Fund Manager (5A at $200,000/yr, 4A at $150,000/yr, 3A base), and does not publish a distinct advisory or credential-gated path anywhere in the guide sections reviewed. The built-in own occupation definition applies to all tiers without election	Yes, still required. The Standard does not name Asset Manager, Fund Manager, or Portfolio Manager among its classified financial-industry titles, but does publish a separate, designation-gated path (CLU, CFP, or ChFC) reaching 5A at $150,000/yr for 3 years. Whichever bucket an asset manager is ultimately classified under, the Own Occupation Benefit Rider must still be separately elected and priced

Source: specimen policy contracts held by Set for Life Insurance for Ameritas Life Insurance Corp. (form 4501NC), Berkshire Life Insurance Company of America underwriting for Guardian (form ICC16 18ID, Provider Choice), Massachusetts Mutual Life Insurance Company (form ICC15-XLIS-RC, Radius Choice), Principal Life Insurance Company (form ICC22-800-IDI, Income Protector), and Standard Insurance Company (form B180(7/17), Platinum Advantage). Quoted language is verbatim contract text. The occupation-class figures in the fourth row are sourced separately from each carrier’s producer-facing underwriting or product guide, not the policy contract, and carry no policy form ID; full detail, including the two distinct classification paths named in that row, is in the paired occupation-class-asset-managers-table.html on this page. No carrier’s guide names “Asset Manager” as a distinct occupation title; the titles quoted are the closest named cross-references each carrier’s own guide actually prints. Guardian’s occupation class is stated on its own numeric scale and is not a direct equivalent to a lettered class at another carrier. Lloyd’s of London coverage, placed through Petersen International Underwriters, is excess and specialty coverage and is not included in this comparison. Terms shown are from specimen policy and producer guide language and are subject to underwriter review at the time of application.

Compare Own-Occupation Delivery by Carrier

A group long-term disability plan typically defines covered monthly earnings as base salary, and management-fee income, deferred compensation, and independent advisory business income fall outside that definition at most employers. Base salary in financial services rises roughly 3 to 3.5% a year, a slow climb, while management-fee income and a growing advisory practice’s own business income move on a separate track that becomes a larger share of total pay over a career. An asset manager whose compensation shifts toward fee-based or AUM-linked pay ends up with the smallest share of income actually insured, exactly when total pay is highest. Confirming what a specific group plan’s earnings definition actually covers is the first step before adding individual coverage.

Check What Your Group Plan Actually Insures

An asset manager is not automatically underwritten the same way as a portfolio manager, because carrier guides classify occupation by actual duties, not a shared job title, and an asset manager’s role can fall into either of two distinct underwriting paths. Ameritas and The Standard publish both a trading-adjacent path and a credential-gated advisory path reaching the identical top occupation class, through genuinely different qualifying routes, one income-based, one credential-based. MassMutual publishes both paths too, but the credential-gated advisory path caps at 4A while the trading-adjacent path reaches 5A, a real difference in coverage ceiling at the same carrier. The path an asset manager’s own duties actually reach, compared in full below, decides which ceiling applies.

Occupation Class for Asset Managers Follows Two Different Underwriting Paths

	Ameritas Life Insurance Corp.	Guardian Berkshire Life Insurance Co. of America	MassMutual Massachusetts Mutual Life Insurance Co.	Principal Principal Life Insurance Company	The Standard Standard Insurance Company
Does a credential-based advisory path reach the same top class as the portfolio-management path	Yes, both reach 5A	Not published either way	No, advisory caps at 4A	Not published either way	Yes, both reach 5A
Path 1, portfolio-management and trading-adjacent duties
Named titles in this bucket	Fund Managers, Portfolio Managers, Financial Analysts, Investment Bankers (grouped with hedge fund and mutual fund employer context)	Banks – Portfolio Manager (Guardian’s own numeric scale)	Portfolio Manager	Mutual fund manager, Portfolio manager, Hedge fund manager, Private equity firm manager (identical schedule for all four)	No title in this bucket is named by profession; the bucket covers Account Executive, Broker, Financial Analyst, Hedge Fund Manager, Investment Banker, Stockbroker, and similar
Top class reachable	5A	Class 5	5A	5A	5A
Income and tenure required	$150,000 a year for at least 2 years	Class 5’s general eligibility requirement: $60,000 a year salary including bonus for at least 2 years, at a business with 5 or more full-time employees	$200,000 a year for the last 2 years	$200,000 a year for the last 2 years	$200,000 a year for each of the last 2 years, no minimum tenure published
Path 2, advisory and client-relationship-facing duties
Named titles in this bucket	Investment Advisors (grouped with Insurance Agents, Financial Planners, Financial Advisors)	Financial Advisor listed at a flat Class 4; no tiered or credential-gated path located in the sections reviewed	Financial Planner, must have designation	No Financial Advisor, Financial Planner, or Investment Adviser entry located anywhere in the guide	Insurance Producers, Financial Advisors, Financial Planners
Professional designation required	No; experience- and income-gated only	Not applicable, no tiered path located	Yes, a designation is required to qualify at all	Not applicable, no bucket located	Yes, CLU, CFP, or ChFC
Top class reachable, income and tenure required	5A at $75,000 a year with 5 years’ experience; 4A at $30,000 a year with 3 years’ experience	Not applicable, no tiered path located; Financial Advisor is fixed at Class 4	4A at $75,000 a year with 5 years’ experience; 3A at $30,000 a year with 3 years’ experience. 5A is not reachable under this bucket regardless of income or designation	Not applicable, no bucket located	5A requires the designation plus 5 years’ experience and $150,000 a year for 3 years; without the designation, 4A requires 3 years’ experience and $75,000 a year for 3 years

Source: producer-facing field underwriting and product guides held by Set for Life Insurance for Ameritas Life Insurance Corp., Berkshire Life Insurance Company of America underwriting for Guardian, Massachusetts Mutual Life Insurance Company, Principal Life Insurance Company, and Standard Insurance Company. These figures come from underwriting guidance, not policy contract language, so no policy form ID applies to this table. No carrier’s guide names “Asset Manager” as a distinct occupation title in the sections reviewed for this table; the two paths shown reflect the closest named cross-reference titles each carrier’s own guide prints, matched to the two occupational orientations the asset-management profession actually spans. Guardian’s occupation class is stated on its own numeric scale and is not a direct equivalent to a lettered class at another carrier. Principal’s and MassMutual’s portfolio-management-path figures also apply, on an identical schedule, to Hedge Fund Manager and, at Principal, to Private Equity Firm Manager; this table does not compare against those titles, which sit outside this page’s own scope. Class assignment is subject to underwriter review at the time of application and may vary by specific role, employer, and income documentation.

Find Your Occupation Class and Coverage Ceiling

A disability insurance carrier does not underwrite coverage against assets under management directly, it requires income documentation scaled to how the asset manager is actually paid. Management-fee income documented through an independent registered investment adviser or a firm’s own advisory arm is treated as self-employed or business income, not a salaried W-2, and carries its own documentation window. Guardian requires 2 years of financial documentation for a business owner or 1099 contractor, against 1 year for a salaried W-2 earner. MassMutual sets a new 1099 contractor’s benefit at 75% of prior W-2 earnings, a mechanic no other carrier reviewed publishes. An asset manager paid through management fees should expect a longer documentation window than a firm-employed colleague drawing a fixed paycheck.

Income Documentation for Asset Managers, by How the Applicant Is Paid

	Ameritas Life Insurance Corp.	Guardian Berkshire Life Insurance Co. of America	MassMutual Massachusetts Mutual Life Insurance Co.	Principal Principal Life Insurance Company	The Standard Standard Insurance Company
Extra documentation required for fee, commission, or business-structured income	Yes, a named occupation list	Yes, a flat compensation-type tier	Not located as a general rule	Not located as a general rule	Yes, a flat 2-year threshold
Salaried W-2 earner	Standard 1-year default outside the carve-outs at right	1 year of financial documentation, at the $10,001-and-up benefit tier	Standard financial section of the application	Standard financial section of the application	Standard requirements; no extra tax-return years required absent bonus or commission income
W-2 earner paid partly by commission or production	May fall under the named financial-industry occupation list below; not separately distinguished from that list	2 years of financial documentation, the same tier as a business owner, at the $10,001-and-up benefit tier	Not located as a distinct rule in the sections reviewed this pass	Not located as a distinct rule in the sections reviewed this pass	A minimum of 2 years’ tax returns are required for bonus or commission income to be considered
Self-employed, 1099, or business owner (the structure an independent RIA principal or fee-based advisory business most often uses)	2 years of financial documentation, both as a general business-owner rule and by name for “certain financial industry occupations, including but not limited to stock brokers, traders, private equity, venture capitalists” (an open, illustrative list, not a claim that asset managers are named directly)	2 years of financial documentation, at the $10,001-and-up benefit tier	New 1099 contractors: benefit set at 75% of prior W-2 earnings (80% for physicians and dentists). Established self-employed: current profit-and-loss statement, with prior-year income averaged if the increase exceeds 15%	Not located as a general rule; the only 2-year documentation requirement found is scoped to the Business Owner’s Allowance rider add-back program, not general self-employed underwriting	Not located as a distinct rule beyond the bonus/commission threshold above in the sections reviewed this pass

Source: producer-facing field underwriting and product guides held by Set for Life Insurance for Ameritas Life Insurance Corp., Berkshire Life Insurance Company of America underwriting for Guardian, Massachusetts Mutual Life Insurance Company, Principal Life Insurance Company, and Standard Insurance Company. These figures come from underwriting guidance, not policy contract language, so no policy form ID applies to this table. No carrier’s guide reviewed for this table names “asset manager,” “management fee income,” or “AUM-based compensation” as underwriting terms; the rows above report each carrier’s general documentation rule by compensation structure, the closest sourced mechanism to how an asset manager is actually paid. Cells marked “not located as a general rule” or “not located as a distinct rule” reflect a keyword search of the guide sections reviewed for this table; they do not assert the carrier has no such provision, only that this pass did not locate one. Documentation requirements are subject to underwriter review at the time of application and may vary by benefit amount, occupation, and state.

Get Your Management Fee Income Counted Toward Coverage

How a disability insurance carrier calculates a residual disability benefit for an asset manager depends on which historical earnings window the carrier’s contract sets, since management-fee income and an independent advisory practice’s own business income can swing meaningfully from one year to the next. Ameritas averages the highest 12 or 24 month period with CPI-U indexing. Guardian averages the last 24 months or the best 2 of the last 3 years, whichever is greater. MassMutual and The Standard average the last 24 months, and Principal averages the last 12 months. A shorter averaging window captures a recent strong year faster, while a longer window smooths a single weak year against several strong ones, a distinction worth confirming before a claim, not after.

How Disability Carriers Calculate Residual Benefits for Asset Managers

	Ameritas Life Insurance Corp. 4501NC · Enhanced Residual Rider (AERES)	Guardian Berkshire Life Insurance Co. of America ICC16 18ID · Provider Choice + Enhanced Partial Rider	Lloyd’s Petersen International Underwriters PDI111521 · Optional Residual Rider	Mass Mutual Massachusetts Mutual Life Insurance Co. ICC15-XLIS-RC · Extended Partial Disability (EPR)	Principal Principal Life Insurance Company ICC22-800-IDI · Income Protector	The Standard Standard Insurance Company B180(7/17) · Platinum Advantage + Residual Riders
1 · Income Loss Threshold That Triggers Residual Benefits
Minimum income loss required % of prior earnings that must be lost before residual benefits begin	15% loss of monthly earnings (Specimen) One of the lowest thresholds available. Rider text states: loss must be “at least 15% of your prior monthly earnings” due to sickness or injury.	Loss of Income due to disability (Specimen) Guardian’s Enhanced Partial rider defines “Loss of Income” as the difference between Prior Income and Current Income attributable solely to the Injury or Sickness. No explicit percentage floor in the base rider, benefit scales proportionally with income loss. Must be Gainfully Employed.	Optional rider, threshold per rider terms (Specimen) Base Lloyd’s specimen (PDI111521) notes “Residual Disability is an optional benefit that only applies if the rider was purchased.” Rider text not included in this specimen. Typical Lloyd’s/PIU residual riders require income loss and inability to perform all material duties.	20–80% loss of Predisability Earnings (Standard) EPR benefit is payable when Monthly Earnings fall to 20%–80% of Predisability Earnings. Below 20% earnings remaining triggers full benefit. Above 80% earnings remaining, no EPR benefit is paid.	Loss of Earnings from own occupation (Specimen) Principal’s Residual Disability Benefit Rider requires a loss of Earnings due to Disability. The specimen confirms “Earnings” excludes unearned income. No explicit minimum percentage floor, benefit scales pro-rata with the earnings loss ratio.	20% loss of Predisability Earnings (Enhanced); 15–20% for Short-Term version (Specimen) Specimen lists Basic, Enhanced, and Short-Term Residual riders. Enhanced Residual: benefit payable when Monthly Earnings are 20%–80% of Predisability Earnings.
2 · Monthly Benefit Calculation Formula
Residual benefit formula How the monthly residual check is calculated	Residual Monthly Benefit = (Loss of Monthly Earnings / Prior Monthly Earnings) x Base Monthly Benefit (Specimen) First 6 months minimum: The greater of (a) 50% of base monthly benefit OR (b) the formula result. 75%+ loss rule: If loss exceeds 75% of prior monthly earnings, treated as 100% loss and full base benefit is paid. Prior earnings: Average of highest 12-month or 24-month period before disability, indexed annually for CPI-U after year 1.	Partial Disability Benefit = (Loss of Income / Prior Income) x Monthly Benefit (Specimen) Prior Income: Average monthly income for either (a) last 24 calendar months, or (b) the two calendar years with highest earnings in the three years before disability, whichever is greater. Current Income: All income for services during disability, excluding pre-disability earned-but-not-yet-received income. Full benefit floor: If loss of income is 100% or more of Prior Income, full monthly benefit is paid.	Proportional formula, rider required (Specimen) Rider language not included in this specimen. Lloyd’s/PIU residual riders typically use a proportional income-loss formula: (income loss / pre-disability income) x base benefit. Confirm with current rider filing.	EPR Benefit = [(Predisability Earnings – Monthly Earnings) / Predisability Earnings] x Monthly Benefit (Standard) Full benefit if earnings are less than 20% of predisability earnings. No benefit if earnings are greater than 80% of predisability earnings. Prior earnings: Average of the 24 months before disability began.	Residual Benefit = (Loss of Earnings / Prior Earnings) x Maximum Monthly Benefit (Standard) Prior Earnings: Average monthly Earnings for the 12 months before disability. Current Earnings: Earnings during the disability period, excludes passive/unearned income. Minimum benefit: Typically 50% of base benefit for first 6 months.	Residual Benefit = [(Predisability Earnings – Monthly Earnings) / Predisability Earnings] x Basic Monthly Benefit (Standard) Full benefit trigger: If Monthly Earnings are less than 20% of Predisability Earnings, full Basic Monthly Benefit is paid. Basic Residual Rider: Flat 50% of base benefit when qualifying criteria met. Enhanced Residual Rider: Proportional formula above; includes Recovery Benefit.
3 · Prior Total Disability Requirement, Can Residual Trigger Independently?
Independent trigger Does residual require a prior period of total disability, or can it trigger on its own?	Fully independent, no prior total disability required (Specimen) Ameritas AERES rider states benefits begin the later of: (1) the day after the end of the Elimination Period, OR (2) the day following a period of total disability for which benefits have been paid. Either path is valid. Days of both total and residual disability satisfy the elimination period.	Fully independent, no prior total disability required (Specimen) Guardian’s Enhanced Partial Disability Benefit Rider uses its own Elimination/Accumulation Period. The insured must satisfy the Accumulation Period but does not need to first be Totally Disabled. Residual days count toward satisfying the Elimination Period.	Rider-dependent, verify current rider (Specimen) Lloyd’s specimen confirms residual is an optional rider. The base policy elimination period can be satisfied by successive periods of Total Disability or Residual Disability, but rider must be reviewed for independence trigger language.	Fully independent, no prior total disability required (Standard) MassMutual’s EPR rider allows residual disability claims to trigger directly after the elimination period without a prior total disability period. Both total and partial disability days satisfy the elimination period.	Fully independent, no prior total disability required (Standard) Principal’s residual/partial disability rider triggers after the elimination period regardless of whether any total disability period occurred. The elimination period can be met by residual disability days alone.	Fully independent, no prior total disability required (Standard) Standard’s Enhanced Residual Disability Benefit Rider triggers after the Benefit Waiting Period is satisfied, independent of any total disability. Days of Disability during the Benefit Waiting Period need not be consecutive.
4 · Benefit Period for Residual Disability
Residual benefit period Maximum duration for which residual benefits can be paid	Remaining unused portion of the Total Disability Maximum Benefit Period (Specimen) The Residual Maximum Benefit Period equals the total unused portion of the maximum benefit period for total disability shown on the schedule. Combined total and residual payments cannot exceed this period. Typically to Age 65/67 when selected.	Same Benefit Period as Total Disability, to Age 65, 67, or 70 (Specimen) Benefit Periods of To Age 70/67/65 or 10/5/2 Years are available. The Enhanced Partial rider benefit period matches the policy benefit period. To Age 70 option available for physicians, distinctive among carriers.	Per Schedule of Benefits / rider terms (Specimen) The residual rider benefit period is set at time of issue and shown on the Schedule of Benefits (Section 1-D). Confirm with current rider.	To Age 65 (base); Extended to Age 65 via Maximum Benefit Period Endorsement (Specimen) Specimen shows coverage end date for Extended Partial Disability corresponding to the policy’s non-cancellable period to age 65. A separate Maximum Benefit Period Endorsement is available with its own premium schedule.	Same as base policy Maximum Benefit Period, 2 years, 5 years, To Age 65/67/70 (Specimen) Options include To Age 65, 67, and 70. Residual benefits run within this same period. To Age 70 available depending on occupation class.	Same as base policy Maximum Benefit Period, to Age 67 in this specimen (Specimen) Maximum Benefit Period schedule applies (e.g., if disability begins at 62: 60 months; at 63: 48 months). Enhanced Residual Disability Benefit Rider matches base benefit period.
5 · Recovery Benefit Provisions
Recovery benefit Protections after returning to work, continued payments if income remains depressed	Explicit Recovery Benefit provision (Specimen) Triggers after a disability benefit period ends if the insured has returned to work, is performing material duties 80% or more of prior time, and still has 15% or more loss of monthly earnings demonstrably caused by the prior disability. Duration: Continues up to the residual maximum benefit period.	Recovery Benefit, income-loss based, ongoing (Specimen) Benefits continue post-recovery as long as Loss of Income persists due to the disability. Because Guardian uses an income-loss formula, benefits naturally continue as long as Current Income remains below Prior Income due to the disabling condition. Prior Income protection: Uses the best 24-month or best-2-of-3-years average.	Recovery benefit per rider, verify current rider (Specimen) Lloyd’s base specimen does not contain recovery benefit language. Standard Lloyd’s/PIU residual riders may include recovery provisions, but this must be confirmed against the current executed rider.	Recovery Benefit included in EPR rider (Standard) After returning to full-time work following a disability for which EPR benefits were paid, if Monthly Earnings remain below Predisability Earnings due to the disability, a proportional recovery benefit continues. Duration: up to the remaining Maximum Benefit Period.	Recovery Benefit, proportional, ongoing post-return (Standard) Provides recovery benefits when an insured has returned to Full Time Work but Earnings remain below prior levels due to the disability. Benefit calculated using the same proportional formula.	Recovery Benefit included, Enhanced Residual Rider only (Specimen) The Basic Residual Rider does not include the Recovery Benefit, the Enhanced version is required. The base policy confirms premiums are waived while Recovery Benefits are payable. Short-Term Residual Rider: does not include recovery benefit.

Source: specimen policy contracts and riders held by Set for Life Insurance, Ameritas Life Insurance Corp. (form 4501NC, Enhanced Residual Rider, AERES), Berkshire Life Insurance Company of America underwriting for Guardian (form ICC16 18ID, Provider Choice, Enhanced Partial Disability Benefit Rider), Petersen International Underwriters for Lloyd’s of London (form PDI111521, Optional Residual Rider), Massachusetts Mutual Life Insurance Company (form ICC15-XLIS-RC, Radius Choice, Extended Partial Disability Rider, EPR), Principal Life Insurance Company (form ICC22-800-IDI, Income Protector), and Standard Insurance Company (form B180(7/17), Platinum Advantage, Enhanced Residual Disability Benefit Rider). Terms shown are subject to underwriter review at the time of application.

Compare Residual Benefit Formulas by Carrier

Group long-term disability coverage and an individual disability policy protect an asset manager in different ways, and the difference concentrates in what income each one insures and how long it lasts. A group plan usually converts to an any-occupation test after 24 months and insures base salary only, while an individually owned policy delivers true own-occupation for the full benefit period and insures earned income evaluated at application. The individual benefit is tax-free when the asset manager pays the premium with after-tax dollars, under Internal Revenue Code Section 104(a)(3), while a group benefit is taxable to the employee whenever the employer pays the premium. An individual policy also stays in force through a firm change, unlike group coverage, which ends with employment.

Group Long-Term Disability Versus an Individual Policy

Source: the Set for Life Insurance Wall Street Income Protection Report, “How a group disability benefit is calculated,” “Own-occupation coverage is usually time-limited,” “The maximum monthly benefit binds first,” “Whether the benefit is taxed,” and “What happens to the coverage when you leave” (group LTD findings across contracts examined for that report, none from a financial services employer directly, all underwritten by carriers active in this sector); Principal Life Insurance Company’s Disability Product Guide, form ICC22-800-IDI, Income Protector (individual maximum monthly benefit example); and Internal Revenue Code Section 104(a)(3) (taxability). The individual-policy maximum monthly benefit shown is Principal’s own published limit and is not asserted as a figure common to all five carriers SFL represents. Group plan terms vary by employer and are shown as the common structure, not a specific plan’s terms. Terms shown are subject to the individual employer’s plan documents and underwriter review at the time of application.

Request a Coverage Comparison

Disability insurance coverage above the group plan is unusually rare among asset management firms, and the Set for Life Insurance Wall Street Income Protection Report’s own census of employer disability filings shows exactly how rare. Of 428 employers filing under the buyout-firms-and-hedge-funds industry classification, only 5 provide an individual disability layer above the group plan, and 4 of those 5 are asset managers, not hedge funds or buyout firms. A sector this thinly covered leaves most asset managers relying entirely on a group plan built around base salary, with no individual layer protecting management-fee income or business income at all. Requesting a quote is the way to find out what an individual policy would actually add on top of an existing group plan.

See Why Coverage in This Sector Is So Thin

An asset manager’s individually owned disability insurance policy stays in force when they move to a new firm or launch an independent registered investment adviser, because the policy belongs to the individual, not the employer. Group coverage, by contrast, ends the day employment with the prior firm ends, and a new employer’s group plan starts its own eligibility and pre-existing-condition clock. An asset manager moving from an institutional mandate to a retail-facing advisory role keeps the individual policy’s terms, premium, and benefit amount unchanged through the transition. Coverage that survives every career move is one of the clearest reasons to hold an individual policy alongside, not instead of, a group plan.

Keep Your Coverage Through Every Firm Change

An asset manager can generally increase disability coverage later without new medical underwriting through a Future Increase Option rider, elected at issue, that allows the benefit amount to rise as income grows without re-proving insurability on health grounds. This matters most for an asset manager early in a fee-based or AUM-linked compensation track, before management-fee income or an equity stake in the advisory business outweighs base salary, since locking in a policy while young and healthy secures the lowest available premium. Income underwriting still applies at the time the increase is exercised, so the option does not waive proof that the higher income actually exists. Electing this rider at application preserves the ability to raise coverage as a career and management-fee income both grow.

Protect Your Ability to Increase Coverage Later

Disability insurance above the five standard-issue carriers is available through supplemental excess coverage placed with Petersen International Underwriters at Lloyd’s of London, for a senior asset management executive or RIA principal whose income exceeds what Ameritas, Guardian, MassMutual, Principal, or The Standard alone can insure at their respective occupation-class ceilings. This excess layer is specialty coverage underwritten separately from the five standard-issue carriers, not a policy sold off the same rate card. An asset manager whose total compensation, including management fees, deferred compensation, or an advisory practice’s own business income, pushes past a single carrier’s participation limit is the buyer this excess layer exists for. Confirming whether income actually reaches that threshold is the first step before applying.

Ask About Coverage Above Standard Limits

A non-cancellable and guaranteed renewable disability insurance policy matters for an asset manager because the carrier cannot cancel the policy, change its terms, or raise the premium for the life of the contract, regardless of how the asset management industry’s own regulatory or compensation environment changes. All five carriers Set for Life Insurance represents issue coverage on this basis, locking in the premium and benefit terms at the age the policy is purchased. An asset manager whose career spans multiple firms, compensation structures, and possibly a move from salaried employment into an independent registered investment adviser keeps the identical policy terms throughout, unaffected by any of those changes. Locking in these terms while young and healthy is the buyer decision this feature protects.

Ask About the Non-Cancellable Renewal Provision

Asset managers can qualify for a multi-life discount on individual disability insurance when three or more employees at the same asset management firm or registered investment adviser apply for coverage together, typically reducing the premium below what each person would pay applying individually. This discount is available across the carriers Set for Life Insurance represents and applies regardless of whether the participating asset managers sit on the trading-adjacent or advisory side of the profession. A firm’s principals and senior asset managers applying as a group also simplify underwriting, since carriers often streamline financial and medical requirements for a qualifying multi-life case. Asking whether a firm’s own headcount qualifies is the fastest way to find out.

Check Your Multi-Life Discount Eligibility

Elimination period options vary by carrier and by the benefit period you select. Ameritas offers the widest range, from 30 to 730 days, and Guardian offers 30 to 720 days, both with some restrictions tied to benefit period and state. Principal, The Standard, and MassMutual all offer a choice of 60, 90, 180, or 365 days. A shorter elimination period costs more in premium but pays sooner, so the right choice generally comes down to how much cash reserve you have to cover a short gap before benefits begin.

Compare Elimination Period Options

Most individual disability policies offer a Cost of Living Adjustment rider that increases your monthly benefit each year you remain on claim, tied to the Consumer Price Index. Guardian, Ameritas, Principal, and The Standard all let you choose a 3 percent or 6 percent maximum increase when you buy the policy. MassMutual’s rider applies a fixed 3 percent compound increase with no higher option. Most carriers require a full year of disability before the adjustments begin.

Ask About Cost of Living Adjustment Riders