Disability Insurance for Portfolio Managers

Delivery of true own-occupation coverage splits the five carriers Set for Life Insurance represents into three distinct groups rather than one uniform feature. Ameritas and Guardian each build a choice of own-occupation definitions into the base contract at no added premium, and both name Portfolio Manager directly among their classified titles. Principal builds true own-occupation into its base definition outright and also names the title directly. MassMutual names Portfolio Manager directly too but delivers true own-occupation only through a separately priced Own Occupation Rider. The Standard neither names Portfolio Manager as a distinct title nor includes own-occupation in its base contract, offering it only through its own separately priced rider.

Own Occupation Definition by Carrier for Portfolio 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
Applies to a portfolio manager’s occupation class without a separate election	Yes. Portfolio Managers are named directly, grouped with Fund Managers and Financial Analysts, reaching occupation class 5A at $150,000 a year for two years. The general own occupation definition applies uniformly regardless of which class is reached	Yes. Portfolio Managers are named directly (“Banks – Portfolio Manager,” Class 5 on Guardian’s own numeric scale, not directly comparable to another carrier’s lettered class). All three definition choices are available regardless of occupation class	No. MassMutual names Portfolio Manager directly (5A at $200,000 a year for two years) but the Own Occupation Rider must still be separately elected and priced; reaching a higher occupation class does not remove that requirement	Yes. Principal names Portfolio Manager directly with a three-tier scale (5A at $200,000 a year, 4A at $150,000 a year, 3A base); the built-in own occupation definition applies to all three tiers without election	No. The Standard does not name Portfolio Manager among its classified financial-industry titles at all; regardless of which occupation class a portfolio manager is ultimately assigned under a nearby classification, 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. 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 usually defines covered monthly earnings as base salary only, even when a performance fee tied to fund returns is reported on the identical W-2. Base salary at most funds and asset-management firms moves slowly within a narrow band set by seniority and title, while performance-fee income moves on a separate track and typically becomes a larger share of total pay as a portfolio manager’s track record grows. The plan insures the fixed, predictable part of pay, not the variable part tied to an individual’s own trading and allocation results. A portfolio manager whose performance fee approaches base salary ends up with the smallest share of income insured.

Check What Your Group Plan Actually Insures

Occupation class sets the ceiling on how much monthly disability benefit a portfolio manager can carry, and four of the five carriers Set for Life Insurance represents name the title directly on their classification lists. Ameritas, Guardian, MassMutual, and Principal each classify Portfolio Manager by name, though the income required to reach the top class ranges from $150,000 a year at Ameritas to $200,000 a year at MassMutual and Principal, with no minimum tenure requirement published alongside that figure. The Standard is the exception and does not classify Portfolio Manager as a distinct title anywhere in its occupation list. Confirm the exact title and income threshold rather than assuming a class transfers between carriers.

Occupation Class for Portfolio Managers by Carrier

	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
Top occupation class reachable	5A	Class 5 (Guardian’s own numeric scale, not a direct equivalent to a lettered class elsewhere on this table)	5A	5A	Not published. Portfolio Manager does not appear in the occupation classification list
Income required to reach the top class	$150,000 a year for at least two years	No income figure printed next to the title itself. Class 5’s general eligibility requirement, published separately, is at least $60,000 salary including bonus for each of the past two years, at a business with five or more full-time employees	$200,000 a year for the last two years	$200,000 a year for the last two years	Not applicable, the title is not named
Lower tier class and its threshold	4A below $150,000 a year	No published tiered scale under this title	4A below $200,000 a year	4A at $150,000 a year for two years; a base occupation class of 3A applies below that	Not applicable, the title is not named
How the guide names the title	Named directly as Portfolio Managers, grouped with Fund Managers, Financial Analysts, and Investment Bankers in the same finance classification bucket	Named directly, “Banks – Portfolio Manager,” in the alphabetized occupation list	Named directly, PORTFOLIO MANAGER, in the occupation-title table	Named directly, “Portfolio manager,” in the occupation-title table	Not named anywhere in the occupation classification list. The nearest financial-occupation bucket (Bank, Credit Union, Finance, Savings and Loan, Title and Escrow) does not include Portfolio Manager among the titles it lists

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. Guardian’s occupation class is stated on its own numeric scale and is not a direct equivalent to a lettered class at another carrier; its income figure is drawn from the class’s general eligibility requirement, not a title-specific figure. The Standard does not classify Portfolio Manager as a distinct title in the guide sections reviewed for this table; this reflects the guide as searched, not a claim that no coverage path exists. 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 Limit

Performance-fee and incentive-fee income is the vocabulary a portfolio manager uses, and bonus or incentive income is the vocabulary a carrier’s underwriting guide uses for the identical thing, compensation tied to performance rather than a fixed base salary. Three of the five carriers Set for Life Insurance represents apply real, differently structured underwriting mechanics for setting the coverage amount at application. Ameritas smooths a fluctuating pattern with a three-year weighted average once fluctuation has occurred. Guardian requires the income to have been earned for two years with an indication it will continue, plus employer verification. Principal applies a three-year average when income rises and the lower recent figure, never an average, when it falls.

How Underwriting Treats Bonus and Incentive Income When Setting Coverage for Portfolio Managers

	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
Whether and how bonus or incentive income qualifies as earned income	Included in general earned income; the underwriter evaluates whether the income pattern is stable and supported by history, with no separate qualifying test stated for bonus or incentive amounts specifically	Counted only if it is a “regular feature” of income, meaning it has been earned for the last two years with an indication it will continue; requires employer verification of two years of bonus history	The guide sections reviewed this pass address a salaried employee’s earned income generally, based on tax-reportable income, but do not publish a distinct bonus- or incentive-income qualifying rule	Salary and bonus both count as earned income for a non-owner employee, documented on Form 1040, line 1, and Form W-2	The bonus- and incentive-income language located in the guide sections reviewed this pass applies to a separate new-business-owner underwriting program, not to a salaried employee generally
How the benefit amount is set when that income fluctuates year to year	A weighted average of the past three years is used once fluctuation has occurred, rather than the current single-year figure	No distinct averaging methodology found in the sections reviewed; Guardian’s stated mechanism is the two-year qualifying test above	Not addressed in the guide sections reviewed this pass	A three-year average is used when income rises significantly or swings from year to year; a decrease instead uses the lower, more recent figure rather than an average	Not addressed for a salaried employee in the guide 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. MassMutual’s and The Standard’s cells reflect a keyword search of the guide sections reviewed for this table; neither cell asserts that the carrier has no such provision, only that this pass did not locate one for a salaried employee generally. This mechanic governs how much coverage an applicant qualifies for at issue and is distinct from how a residual disability claim is calculated after a partial disability, which is addressed elsewhere on this page. Terms shown are subject to underwriter review at the time of application.

Get Your Incentive Income Counted Toward Coverage

Residual disability coverage pays a partial benefit when a portfolio manager loses income to a disability without becoming totally unable to work, a scenario a performance-fee-driven career produces more often than an all-or-nothing claim. Because incentive-fee income varies year to year, the prior-earnings window each carrier uses before disability changes the size of the check as much as the benefit formula itself. Ameritas averages the highest 12 or 24 month period, indexed to inflation. Guardian averages the last 24 months or the best two of the last three years, whichever is higher. MassMutual and The Standard average the last 24 months, and Principal averages the last 12 months. Confirm which window applies before assuming two quotes pay the same check.

How Disability Carriers Calculate Residual Benefits for Portfolio 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 and Whether Residual Can 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 and an individual policy protect different things for a portfolio manager’s performance-fee-heavy income. Group coverage narrows the own-occupation definition over time, caps the benefit at a flat dollar ceiling unrelated to occupation class or fund performance, and ends the moment employment does, since the Employee Retirement Income Security Act of 1974 makes it the employer’s plan. An individual policy sets its benefit by occupation class and documented income, including performance-fee pay a group plan’s earnings definition typically excludes, and travels through every fund or firm change. A group plan benefit is generally taxable to the employee, while an individual policy purchased with after-tax dollars pays a tax-free benefit.

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 Review

An individually owned disability insurance policy stays in force when a portfolio manager moves from one fund to another, from a mutual fund to a hedge fund, or from one asset-management firm to a boutique shop, because the policy belongs to the individual, not the employer. Group long-term disability coverage, by contrast, ends the day employment ends, and a new employer’s group plan starts its own eligibility period and pre-existing-condition clock from zero. A portfolio manager who locks in an individual policy while employed at one fund keeps the same premium, occupation class, and definitions after moving, with no new medical underwriting required.

Keep Your Coverage When You Change Funds

A Future Increase Option rider lets a portfolio manager raise the monthly benefit on an existing individual disability insurance policy at set future dates without new medical underwriting, requiring only financial verification that income has grown enough to support the higher benefit. This matters for a portfolio manager whose performance-fee income can grow substantially as a track record builds, since income growth alone would otherwise require a new application and a fresh health review to raise coverage. Electing the rider at issue, while young and healthy, preserves the option to increase coverage later at standard rates even if a health condition would make new underwriting difficult by then.

Protect Your Ability to Increase Coverage Later

High-limit disability insurance placed through Lloyd’s of London, arranged through Petersen International Underwriters, adds supplemental coverage above what Ameritas, Guardian, MassMutual, Principal, and The Standard issue individually, and it applies at the income level where a senior portfolio manager or fund principal sits closest to a carrier’s standard-issue ceiling. A portfolio manager whose performance fee pushes total income well past a single carrier’s maximum monthly benefit can layer this excess coverage on top of standard-issue policies rather than leaving the income above that ceiling uninsured. Confirming existing standard-issue coverage and its issue limit is the first step before applying for the excess layer.

Ask About Coverage Above Standard Limits

A non-cancellable and guaranteed renewable individual disability insurance policy locks the premium and the contract terms for the life of the policy, so a carrier cannot raise the rate or change the definitions later, even after a portfolio manager’s income, employer, or health changes. This matters across a career that runs from a junior analyst-turned-manager’s early track record to a senior principal’s peak performance-fee income, since the terms that applied at a lower occupation class stay fixed even after a promotion or a new health diagnosis would otherwise justify a rate increase. Ameritas, Guardian, MassMutual, Principal, and The Standard all issue their individual policies on this basis, unlike group coverage.

Lock In Your Terms for the Long Term

A multi-life discount reduces the premium on an individual disability insurance policy when several employees at the same fund or firm apply together through an employer-sponsored or association-sponsored arrangement, and several of the five carriers Set for Life Insurance represents offer one to eligible groups. A fund, asset-management firm, or trading desk with enough portfolio managers and analysts applying together can qualify for simplified underwriting and a lower rate than each individual would receive applying alone. Eligibility and the size of the discount depend on the number of applicants and the carrier, so confirming availability requires checking current terms rather than assuming every workplace qualifies.

Ask About 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

Disability insurance underwrites earned income, compensation for services actually performed, such as salary and bonus. Carried interest is typically structured and taxed as a share of investment profit rather than compensation for services, so most carriers do not count it toward the income used to calculate how much coverage you can buy. If carried interest is part of your compensation, the salary and bonus portion of your pay is what a policy is built around.

Compare Coverage Options for Your Compensation Structure

Not every portfolio manager’s performance-fee income arrives as a W-2 bonus. At a hedge fund or private equity fund organized as a partnership, a portfolio manager who holds a stake in the management company or the fund itself can receive that same incentive economics as a K-1 profit allocation, reported on Schedule K-1 rather than Form W-2. A carrier evaluating that income separates it into categories that are not treated the same way: a guaranteed payment for services, which functions closest to salary; a distributive share of ordinary business income, which reflects the portfolio manager’s active role in generating it; and any allocation tied to the fund’s own investment performance or the manager’s capital account, which a carrier can treat as investment return rather than earned income. None of the five carriers Set for Life Insurance represents publishes a rule addressed to K-1 income by name, so the applicable path runs through the same income-documentation review used for any partnership or business-owner structure. See disability insurance for asset managers for how that review works when the K-1 comes from firm ownership rather than a fund allocation. A portfolio manager whose K-1 blends several of these categories should expect an underwriter to ask which portion reflects ongoing compensation for work still being performed, not simply request the K-1 itself.

Get Your K-1 Income Reviewed for Coverage