When pay arrives as salary plus bonus, commission, partnership draws, or equity, a disability policy sized to the salary covers only part of what you earn. Income counting is therefore the first check for an executive, owner, attorney, or financial professional, ahead of the definition and ahead of any coverage on the business.

The Bureau of Labor Statistics Occupational Outlook Handbook reports that "The median annual wage for lawyers was $151,160 in May 2024."

Which parts of your pay count toward the benefit?

Bonus, commission, partnership draws and K-1 earned income, and vested equity reported as W-2 wages can each count toward the benefit when they are documented and recurring. Carriers work from documented income, typically about two years of tax returns plus K-1s or partnership statements.

Which pay components count toward a disability benefit for executives, owners, attorneys, and financial professionals
Pay component Counts toward the benefit? Condition
Bonus and commission Can count Documented and recurring
Partnership draws and K-1 earned income Can count Shown on K-1s or partnership statements
Vested equity Can count Reported as W-2 wages
Unvested equity and unexercised options Generally excluded Left out of earned income
Dividends, capital gains, and rent Generally excluded Unearned investment income

Unvested equity, unexercised options, and unearned investment income such as dividends, capital gains, and rent are generally excluded from earned income. The documentation behind each line is covered in sizing coverage to variable and equity compensation, and the general method is in how much disability insurance you need.

Employer group long-term disability usually covers base salary only, caps the monthly benefit, and is taxable when the employer pays the premium. What that leaves uncovered for a high earner is laid out in group versus individual coverage.

Does the own-occupation definition follow the role you hold?

The own-occupation definition follows the role you hold when the policy is written as true own-occupation, which all five carriers we place can do for these professions. Under that definition a litigator is measured against trying cases and a fund manager against managing the fund, and total-disability benefits continue even if you take another role and keep earning. An any-occupation contract can treat the ability to do some office work as a reason to deny.

Litigators have the most to confirm here. A trial attorney whose disability ends courtroom work but leaves desk-bound legal tasks intact needs the policy to read the occupation as trying cases, and The Standard deems "trial attorney" a specialty under its Own Occupation Rider. The other carriers get to own-occupation by different mechanisms, compared in true own-occupation for executives, owners, and attorneys, and the definition types are explained in the own-occupation guide. Ask each carrier whether benefits continue if a disability ends your specific role and you take another job.

If you own the firm, which policies sit beside the personal one?

Business Overhead Expense, buy-sell, and key-person policies sit beside the personal policy for a firm owner, because personal disability insurance replaces the owner's income and does nothing for the business while the owner is out. Which of the three you need depends on how the business is structured.

Business Overhead Expense reimburses covered fixed costs such as staff salaries, rent, and equipment or loan payments during a disability, so the firm can stay open or be sold. Ameritas offers the highest limit of the carriers we place as of 2026, $100,000 a month at the 12-month benefit period, while the others cap at roughly $50,000 to $60,000. Take the benefit period out further and the Ameritas monthly maximum drops below that headline figure.

Buy-sell disability insurance funds a partner's buyout of a disabled owner's interest at an agreed price. Key-person coverage offsets the financial loss when a disabled owner or essential employee can no longer contribute.

Compare how the five carriers count your pay
Seaworthy runs each quote across all five carriers and checks the income counted, the definition for your role, and any business coverage on each one.
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How far can the benefit grow as your income rises?

The benefit can grow as far as the carrier's issue limit, and the occupation class fixes that outer ceiling at generally around $35,000 a month at one carrier in the strongest non-medical classes as of 2026. Documented income decides the figure a carrier offers and holds it well under the ceiling in nearly every case. Larger totals are sometimes possible by combining carriers.

A benefit-increase option is how a policy bought on an associate's or a junior executive's pay keeps up with a partner's or a senior leader's income. With the option in place, later increases are underwritten on updated income alone and keep the health rating you were first issued. Most new policies we place include a benefit-increase feature of some kind, and the future increase option guide covers the mechanics.

What else should the contract and the application show?

The contract should show a noncancelable guarantee and a residual rider, and the application should go in while the health record is clean. Noncancelable means the carrier cannot raise the premium, change the terms, or cancel the coverage as long as you pay the premium, which is more than a guaranteed renewable contract promises. The difference is explained in guaranteed renewable versus noncancelable.

A residual rider pays when a covered disability reduces earnings without ending work, as when an attorney can no longer carry a full trial calendar or an executive returns part-time after an illness. The trigger runs from a 15 to 20 percent income loss across the five carriers.

About 28 percent of the policies in Seaworthy's placed book (2026 audit) were issued with an exclusion or a rating, which is the argument for applying before a condition is on file. As of 2026 a no-exam path for applicants under 50 is the norm across the five carriers, with Guardian the exception, since it still orders an exam above $3,000 of monthly benefit at those ages. Ameritas asks for no exam, no labs, and no phone interview at any benefit amount from applicants age 50 and under. Timing is covered in when to buy disability insurance, and exclusion riders explains what an exclusion does to a policy.

A lower premium attached to a weaker definition or a missing rider is not the better value, so compare contract language before price. The business and finance quote comparison lines up all five carriers on own-occupation mechanism, occupation class, and the standout each one offers, and the business and finance hub explains how these professions are classed.

Tax treatment of a benefit turns on who paid the premium and on your own situation, so take the tax points here as general information and check them with a tax advisor. A quote across all five carriers runs the comparison on your own income and role.

Frequently asked questions

Which income counts when an executive or partner sizes a disability benefit?
Carriers size the benefit from documented earned income, typically about two years of tax returns plus K-1s or partnership statements. Bonus, commission, partnership draws and K-1 earned income, and vested equity reported as W-2 wages can count when they are documented and recurring. Unvested equity, unexercised options, and unearned investment income are generally not counted. Employer group long-term disability typically covers base salary only, so a benefit built on base pay can leave structured compensation uninsured.
How does own-occupation work for a trial attorney?
A trial attorney needs the policy to read the occupation as trying cases, so that a disability ending courtroom work pays even when desk-bound legal tasks remain possible. The Standard deems trial attorney a specialty under its Own Occupation Rider, which is a point in its favor for litigators. True own-occupation for attorneys is available from all five carriers we place, each through its own mechanism. Ask each one whether benefits continue if a disability ends trial work and you take another role.
If I own the business, what does personal disability insurance leave uncovered?
Personal disability insurance replaces the owner's income and does nothing for the business during the absence. Business Overhead Expense reimburses covered fixed costs such as staff salaries, rent, and loan payments so the firm can stay open or be sold. Buy-sell disability insurance funds a partner's buyout of a disabled owner's interest, and key-person coverage offsets the loss when a disabled owner or essential employee can no longer contribute. Which of these applies depends on the ownership structure.
How high can a Business Overhead Expense benefit go?
Ameritas offers the highest Business Overhead Expense limit of the carriers we place as of 2026, at $100,000 a month on a 12-month benefit period. The other carriers cap at roughly $50,000 to $60,000 a month. A longer benefit period at Ameritas carries a lower monthly maximum, so the limit and the benefit period should be read together.
Why does employer group coverage fall short when pay includes bonus or equity?
Employer group long-term disability usually covers base salary only and caps the monthly benefit. When the employer pays the premium, that benefit is taxable as well. For someone paid largely in bonus, commission, or partnership income, much of what they earn sits outside such a plan. Tax treatment depends on who paid the premium and on your own situation, so confirm it with a tax advisor.
How large a monthly benefit can an executive or attorney reach?
The occupation class sets the outer ceiling, which is generally around $35,000 a month at one carrier in the strongest non-medical classes as of 2026. Documented income decides the figure a carrier offers and holds it well under that ceiling in nearly every case. Larger totals are sometimes possible by combining carriers. A benefit-increase option lets coverage rise later on updated income alone, and most new policies we place include an increase feature of some kind.