Executive Disability Insurance

Most major carriers exclude unearned equity income from the disability insurance benefit calculation. Principal’s product guide states that earnings “do not include any form of unearned income such as dividends, rents, interest, capital gains, income received from any form of deferred compensation, retirement, pension plan, income from royalties, or disability benefits.” The Standard does not address equity compensation in its income documentation table. The operative figure is typically W-2 box 5 (Medicare wages and tips), which captures vested RSU income at vest but not unvested grants or deferred compensation accruals. Executives with equity-heavy compensation should size the benefit to vested W-2 income rather than to total compensation.

The standard ceiling at top occupation classes is $35,000 per month at both Principal and The Standard. The cap applies to the new policy plus any other individual disability coverage in force plus group long-term disability benefits combined. The $35,000 monthly benefit is typically reached at approximately $1.5 million to $1.7 million of earned income. Above that income level, executives layer policies across multiple carriers. The Standard explicitly permits Lloyd’s of London participation alongside Platinum Advantage without reducing The Standard’s benefit. Principal layers DI Retirement Security on top of the base policy, funding an irrevocable retirement trust during a disability claim. Carrier stacking is broker-led and requires knowledge of each carrier’s participation limits.

A corporate executive earning $250,000 or more in office-based managerial work typically qualifies for occupation class 5A or higher. MassMutual’s Executive Underwriting Program upgrades qualifying executives to class 5A/5, the top of its ten-tier ladder, when income exceeds $250,000, manual duties stay below 10 percent, sales activities stay below 20 percent, and tenure exceeds five years. Principal classifies finance and portfolio management executives at class 5A or 6A+ when income exceeds $200,000 over the prior two years. The Standard places office-based managers and executives earning $100,000 or more each of the last two years at class 5A and applies a 20 percent Preferred Occupation Discount. Higher classes carry lower premiums for the same benefit.

	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
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.

Most employer-sponsored group long-term disability plans use an own-occupation definition for the first 24 to 36 months of a claim, then shift to an any-occupation definition. After the switch, the executive must prove they cannot perform any work they are reasonably qualified for by education, training, or experience. Benefits often stop at month 24 for executives whose skills transfer across industries, even when they cannot perform their original role. Individual non-cancellable own-occupation disability insurance holds the original definition for the full benefit period, typically to age 65 or 67. Read more in Executive Group Disability Switches to Any-Occupation at Month 24.

A corporate executive earning $250,000 or more in office-based managerial work typically qualifies for occupation class 5A or higher. MassMutual’s Executive Underwriting Program upgrades qualifying executives to class 5A/5, the top of its ten-tier ladder, when income exceeds $250,000, manual duties stay below 10 percent, sales activities stay below 20 percent, and tenure exceeds five years. Principal classifies finance and portfolio management executives at class 5A or 6A+ when income exceeds $200,000 over the prior two years. The Standard places office-based managers and executives earning $100,000 or more each of the last two years at class 5A and applies a 20 percent Preferred Occupation Discount. Higher classes carry lower premiums for the same benefit.

Occupation Class Underwriting Principles — Rules Every Carrier Applies

	Ameritas Life Insurance Corp. Field Underwriting Guide	Guardian Berkshire Life Insurance Co. of America Provider Choice · IDI Field Underwriting Guide	Mass Mutual Massachusetts Mutual Life Insurance Co. Radius Choice · Underwriting Guide	Principal Principal Life Insurance Company Income Protector · Disability Product Guide	The Standard Standard Insurance Company Platinum Advantage · Product Guide
Top-tier annual income required to qualify	~$75,000+	~$75,000+	~$250,000+	~$200,000+	~$150,000+
Classification based on duties, not job title	Yes — explicitly stated	Yes — explicitly stated (Section 7, rule 5)	Yes — “A job title alone is not sufficient”	Yes — explicitly stated (Section 16)	Yes — “Specify the duties of the applicant’s occupation, not just the title”
Rule for applicants with multiple occupations	Lower occupational class prevails	Lower occupational class prevails	Lower class prevails and applies to the entire contract	Lower class prevails	Occupation with the greatest risk determines the class
Minimum hours per week to qualify (full-time threshold)	30 hours	30 hours	30 hours	30 hours	30 hours
Manual-duty cap for top-tier class	No manual duties	0% manual (Class 6); ≤10% manual (Class 5)	No manual duties — office only	Office-only for the 6A+ tier	Office-only for the 5A tier
Income threshold for top-tier classification	$75,000+ (5A) / $100,000+ (6A consultant tier)	$75,000+ (Class 6) / $60,000+ (Class 5)	Up to $250,000+ for 5A/5 corporate executive tier	$200,000+ for the 6A+ business-owner tier	$150,000+ for top-tier insurance producers; varies by occupation
Stable-business requirement for top-tier classification	5 years in business, 10+ employees	5 years in business, 10+ employees with at least 5 in classes 4–6	5 years in business with employee and ownership tests	Varies by occupation	5 years continuous experience (varies by occupation)
Class upgrade or “Move-Up” program	“Preferred Occupations” 5% premium credit for 6A–4A	“Move-Up Option” with named criteria A through P	Business Owner Upgrade and Executive Upgrade Programs	Business Owner Program with three income tiers	Business Owner Upgrade and Earned Income Enhancer
Premium discounts available based on class	5% credit for preferred occupations (6A–4A)	10% Preferred Occupation Discount (POD) on eligible specialties	Modifier-based pricing tiers (Radius Choice)	Stackable discounts up to 35% (multi-life GSI), 20% (multi-life), 10% (association)	Multi-life and business owner discounts; gender-neutral options

Source: Field underwriting guides published by each carrier. Thresholds and discount percentages are subject to change at carrier discretion and may vary by state. Set for Life Insurance verifies current values at the time of quoting.

Premium is determined by age at issue, gender, occupation class, benefit amount, elimination period, benefit period, riders selected, health history, and tobacco status. Age and gender are the largest single factors. Female disability rates run almost twice male rates for an equivalent executive. Occupation class drives the next-largest swing. MassMutual’s Radius Choice product introduces granular class modifiers including 5A/5, 5A/3, 4A/3, 4A/2, and 4A/1, creating intermediate price points whole-class competitors do not offer. Discounts of 10 to 20 percent stack across multi-life arrangements, association memberships, eApply usage, and the Preferred Occupation Discount at The Standard. Executives in office-based managerial roles often pay less than peers with the same income in other occupations.

A Catastrophic Disability Benefit rider pays an additional monthly benefit on top of the standard disability benefit when the insured cannot perform two or more activities of daily living without assistance, is cognitively impaired, or meets the presumptive disability definition. Activities of daily living include bathing, continence, dressing, eating, toileting, and transferring. Principal’s rider stacks up to five times the base monthly benefit, capped at $12,500 per month of additional benefit. The Standard’s rider stacks up to three times the basic monthly benefit, capped at $15,000 per month, with all sources of disability income combined limited to 60 percent of earned income. The rider is purchased at issue and cannot be added later without re-underwriting.

Standard benefit periods include 2 years, 5 years, 10 years, to age 65, and to age 67. Principal also offers to age 70 for non-medical classes. No major carrier issues a lifetime benefit period to executives. Late-life claims carry graded payout schedules. On a Principal to-age-65 policy, a disability after age 61 pays 48 months rather than the full remaining period. On a Standard to-age-67 policy, a disability at age 65 pays 36 months. The policy remains non-cancellable and guaranteed renewable to the termination date, meaning the insurer cannot raise premium or change terms during that period. The Standard offers a Renewal Option past the termination date for executives working 30 or more hours per week.

	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
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, which is 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.

Yes. Individual executive disability insurance policies are owned by the insured, not by the employer. The policy continues without change through an employer change, geographic relocation, change of role, or sabbatical. The benefit amount, premium, definition of disability, and riders all remain as issued at the time of purchase. By contrast, employer group long-term disability coverage ends when the executive leaves the company. An individual policy purchased during a high-income period at a top employer locks in coverage that the executive carries forward to subsequent employers, including roles at companies that do not offer group disability coverage at all.

The Standard’s Platinum Advantage is the only major carrier product that issues new individual disability insurance to executives at age 60 and above in the non-medical occupation classes. Issue ages run 18 to 64 for the 5A, 4A, 3A, 2A, A, and B classes. Premium reflects attained age and is materially higher than for younger applicants. The Standard’s Renewal Option extends total disability coverage past the policy termination date for executives who continue to work 30 or more hours per week and are not disabled at the renewal date, allowing the policy to remain in force during phased retirement. Principal’s monthly issue cap drops from $35,000 to $20,000 at age 61 and above.

Principal and The Standard both cap disability benefits at 12 months of payment while the insured is living outside the United States and Canada. Principal requires residence in the U.S. or Canada for at least six consecutive months in each calendar year for benefits to continue beyond 12 months. The Standard’s foreign residence clause is required by California, Florida, Montana, New York, North Dakota, South Dakota, and Wyoming. Executives planning a multi-year international assignment should review the residence terms with the broker before the assignment begins. Pre-issue travel disclosure is the only window in which destination affects coverage. Once a policy is in force, short-term travel does not affect benefits.

Yes. Executives with certain health histories may be eligible for Guaranteed Standard Issue (GSI) disability insurance, which does not require medical underwriting. GSI programs available through Set for Life Insurance offer coverage with fixed benefits of up to $15,000 per month and approval within five business days. These may be set up through the employer if 3 or more employees apply for coverage. These policies are referred to as multi-life policies.

Carriers such as Guardian, Principal Financial Group, MassMutual, Ameritas and The Standard provide these programs for executives affiliated with approved organizations or professional associations. This option ensures income protection even for those with prior medical concerns or underwriting limitations.

A CPAP disclosed on a disability insurance application triggers, at minimum, a five-year cap on the benefit period, and at some carriers an outright decline. Severity is not part of the initial underwriting read. The CPAP for mild positional apnea reads the same on the file as the CPAP for severe obstructive apnea. A documented sleep study showing mild or positional apnea, paired with a physician’s letter clarifying the preventive nature of the device, can reverse the cap if submitted before or alongside the application. The reversal does not happen automatically after the policy issues. Read more in CPAP Triggers Five-Year Cap on Executive Disability Insurance.

Yes. Any psychological treatment in the medical record affects the rating. Anxiety, depression, ADHD, and SSRI prescriptions all generate the same default response from the underwriter regardless of severity. The carrier attaches a permanent rating at issue and the rating stays in force for the life of the contract. A reconsideration application filed after one year of clean medical documentation can sometimes remove the rating, but the path is broker-led and requires updated clinical documentation. California is the only state that mandates full mental and nervous coverage on every individual disability policy; every other state offers an optional two-year mental-nervous limitation in exchange for a 10 percent premium discount. Read more in SSRI Prescriptions Trigger Permanent Rating on Executive Disability Policy.

No. Individual non-cancellable disability insurance premiums lock at issue based on age, gender, occupation class, benefit amount, riders, and health history at the time of underwriting. A raise, a promotion, a change of employer, or a clean medical year does not reset the premium or the rating. The premium an executive locks in at 38 is the premium they carry through age 65. The rate that locks at issue is the central commitment of the non-cancellable contract. Read more in Executive Disability Insurance Locks at Issue, Not Promotion.

Multi-Life disability insurance is a structured program that allows three or more executives from the same employer to purchase individual disability coverage on coordinated terms. Principal’s Employer Multi-Life program offers discounts up to 35 percent stacked with Guaranteed Standard Issue underwriting, requires home-office approval plus an employee census, applies to occupation classes 3A and higher, and accepts a minimum of five employer-paid lives. The Standard’s Employer-Based Multi-Life Discount is 10 percent on Platinum Advantage for three or more lives from the same employer within a six-month window. Policies issued under Multi-Life are individually owned and remain portable when the executive leaves the company. The arrangement reduces premium, simplifies underwriting through the Guaranteed Standard Issue mechanism, and makes coverage available to executives whose medical history might otherwise complicate individual issue.

Yes. Discounts available to executives stack across multiple programs. The Standard offers a 20 percent Preferred Occupation Discount on Platinum Advantage for 5A executives in office-based managerial roles earning $100,000 or more each of the prior two years. A 10 percent Employer-Based Multi-Life Discount applies when three or more executives from the same employer apply within six months. Additional 5 percent discounts apply for multi-product purchase, eApply usage, and GSI cross-sale. Principal applies a Multi-Life Employer discount up to 20 percent layered with a GSI discount up to 35 percent for qualifying executive groups. Association memberships in groups such as the American Bar Association can add 10 to 15 percent discounts depending on carrier.

Occupation Class Structure — How Each Carrier Tiers Risk

	Ameritas Life Insurance Corp. Field Underwriting Guide	Guardian Berkshire Life Insurance Co. of America Provider Choice · IDI Field Underwriting Guide	Mass Mutual Massachusetts Mutual Life Insurance Co. Radius Choice · Underwriting Guide	Principal Principal Life Insurance Company Income Protector · Disability Product Guide	The Standard Standard Insurance Company Platinum Advantage · Product Guide
Total distinct insurable classes	~13	~14	~17	~22	~12
Top non-medical class	6A	Class 6	5A/5 (with Radius Choice modifier)	6A+	5A
Top physician class	6M	6M	5P/1	6M	5P
Top dental class	No separate D track — dentists slotted into M classes	4D	4D	4D+	3D
Lowest insurable non-medical class	B	Class 2	A	1A	B
Lowest insurable medical class	M	2M (1M uninsurable)	3P / 4P (no lower medical class)	1M	4P
Separate medical-professional track	Yes — “M” classes (6M, 5M, 4M, 3M, 2M, M)	Yes — “M” classes (6M through 1M)	Yes — uses “P” designation (5P, 4P, 3P, 2P)	Yes — “M” classes (6M through 1M, with “+” modifiers)	Yes — uses “P” designation (5P, 4P, 4S, 3P, 2P)
Separate dental-professional track	No — dentists assigned within “M” classes	Yes — 4D and 3D	Yes — 4D and 3D	Yes — five-tier dental track (4D+, 3D+, 3D, 2D, 1D)	Partial — 3D only (one combined dental class)
Sub-tier or “plus” modifiers between main classes	None	None	Yes — Radius Choice modifiers (5A/5, 5A/3, 4A/3, 4A/2, 4A/1, 5P/1, 3P/2)	Yes — extensive “+” modifiers (6A+, 5M+, 3M+, 2A+, 2M+, 4D+, 3D+)	Limited — 4S (surgeons) is the only intermediate designation

Source: Field underwriting guides published by each carrier. Class names and product identifiers are taken from the most recently published producer-facing guides held by Set for Life Insurance. Class assignments are subject to underwriter review at the time of application.

Set for Life Insurance places executive disability coverage with Principal Financial Group, The Standard, Guardian (Berkshire Life), MassMutual, Ameritas, and Lloyd’s of London. Each carrier offers individual non-cancellable own-occupation disability insurance for high-income executives, with policy issue limits typically capping at $35,000 per month at the top occupation classes. Lloyd’s of London participation is available as a stacking layer above the carrier maximum for executives whose insurable income exceeds the single-carrier ceiling. Principal additionally offers DI Retirement Security as a separate policy that protects retirement contributions during a disability claim. The broker recommends the carrier and product combination based on occupational class, age, health profile, compensation structure, and the executive’s planning objectives.