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Employer Plan Guide

Voluntary employee-paid group: What It Pays, What It Misses and the Portable Fix

Voluntary employee-paid group: replaces 40–60% of base, definition = any-occupation typically, portable = no.

Updated Oct 22, 2026 174 words Reviewed against primary sources
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Key facts
Plan typeVoluntary employee-paid group
Income replaced40–60% of base
PortableNo

Voluntary plans are employee-paid but group-contracted — meaning taxable benefits and no portability. An individual policy at similar premium usually beats it on definition alone.

The plan structure

Parameter Detail
Plan type Voluntary employee-paid group
Definition Any-occupation typically
Income replaced 40–60% of base
Portable No
Company size Any

Portability is the hidden line: stays with the employer when you change jobs. Career movers pay for that flexibility in premium differences worth comparing early.

The gap this plan leaves

Group plans share three structural holes: the taxable benefit line, the any-occupation flip after 24 months, and income caps that strand anyone earning above the cap ceiling. Each hole has the same individual-policy fix.

The layered fix

Layer an individual own-occupation policy sized to the gap — typically enough individual coverage to bring total replacement to 65-70% of true earnings on an own-occ definition. The group plan keeps doing the cheap bulk work; the individual policy owns the quality definition.

Voluntary employee-paid group is a base layer, not a plan: size the individual layer against what it will not pay.

Frequently asked questions

Is my employer plan enough?
For base-salary earners staying at one company, close. For high earners or career movers u2014 almost never.
Can I keep group coverage after leaving?
No u2014 it ends with employment. COBRA does not apply to LTD.
Why is the group benefit taxable?
Because the employer paid the premium. Employee-paid voluntary plans are usually taxable too u2014 check the contract.