A wirehouse financial advisor recently asked me to run the numbers on his group long-term disability (LTD) coverage. He had enrolled years earlier and looked at the benefit summary, which indicated coverage for 60% of his earnings — a figure that seemed generous enough.

What he didn’t check was what that 60% was applied to. When I pulled the certificate and double-checked it years later when his wife was pregnant with twins, he was disappointed to learn it provided 60% of his base salary only. READ MORE