Guardian vs. MassMutual Disability Insurance: 6 Key Differences

Guardian and MassMutual are two titans in the insurance industry. Both are part of the “Big 5” disability insurance companies, and they’re the only providers that hold an A++ rating. But how do they stack up against each other? Are there circumstances where one clearly outshines the other?

What are the differences in long-term disability coverage?

At first glance, both companies offer similar benefits. They provide strong true own-occupation coverage (you might have heard this called “specialty-specific,” especially if you’re a physician). Their policies can include long benefit periods and offer up to $30,000 per month in benefits, depending on your occupation and financial qualifications. 

The biggest differences are in the smallest of places — the fine print of optional riders and built-in policy features.

MassMutual’s advantages

MassMutual offers several unique benefits that set it apart from its competitors, including Guardian.

Mental health benefits

One thing that’s unique about MassMutual is its policy on mental health benefits. Most of the “Big 5” companies limit mental disability benefits (think anxiety, depression, substance abuse, schizophrenia, etc.) to 24 months. But MassMutual takes a different approach. 

While other companies cap benefits at 24 months for the lifetime of the policy, MassMutual resets the clock for each separate incident. 

If someone is going to have this 24-month limitation slapped on their policy because of a preexisting condition or high-stress occupation that could trigger mental health issues, this is, without a doubt, the best language any carrier offers. 

On the other hand, individuals with no family history of mental health issues or in lower-stress jobs might voluntarily take the lower limitation for cheaper premium payments.

RetireGuard: Protect retirement savings

Another standout feature is MassMutual’s RetireGuard. Long-term disability policies typically replace your income until age 65, 67 or 70 if you’re disabled. But what happens after that? Retirement normally includes Social Security payments and 401(k) withdrawals. But disability income doesn’t count as “earned income,” so you can’t contribute to tax-advantaged accounts like a 401(k) or IRA.

So, let’s consider an example. Suppose Will is a 30-year-old orthopedic surgeon whose favorite hobby is woodworking. He’d just begun his career as an attending and was lucky to have a robust long term disability policy in place when he lost a hand while building a table in his workshop. His policy pays him $15,000 per month tax-free until he turns 65.

While this helps with immediate income, there’s a problem — it doesn’t allow him to save for retirement in traditional retirement accounts. Since his retirement investments from work are nothing notable this early in his working career, he’d have to be very studious and use a brokerage account instead to save up for the golden years. 

RetireGuard helps solve this problem by contributing monthly to an irrevocable trust for retirement while the insured is disabled.  

Dividends for policyholders

Last is another feature that sets MassMutual apart from not just Guardian, but every “Big 5” company: Dividends. 

While not guaranteed, policy owners can be eligible to receive 10% of their premiums back every year after year six, as long as they haven’t filed a disability claim on their policy. Hopefully, this would be the case for most of our readers with their policies.

Guardian advantages

Guardian stands out with a range of features that provide added security and flexibility for policyholders.

Extended waiver of premium

Most disability policies include a waiver of premium, meaning you shouldn’t have to pay premiums while receiving disability benefits. However, Guardian goes even further by waiving premiums for six months after you return to work from your disability. 

If your disability is the result of an act of violence (from another person), Guardian may also waive the elimination period, allowing you to collect benefits much faster. 

Serious Illness Supplemental Benefit

Another interesting feature is the Serious Illness Supplemental Benefit. This benefit means that “50% of the monthly benefit will be payable, in addition to the monthly benefit, for up to 12 months if totally disabled due to cancer, stroke or heart attack.” 

Since these serious illnesses often increase a family’s expenses, this extra benefit at no additional cost is a very welcome addition and a financial relief to have on a policy.

Guaranteed Standard Issue (GSI) policies

Where Guardian reigns supreme is in its Guaranteed Standard Issue (GSI) policies. GSIs are available through Guardian at medical residencies all over the country. In short, it’s a special type of policy that accepts everyone who applies from a qualifying residency, with no medical underwriting whatsoever. They don’t even ask how much applicants weigh. 

GSIs are an important disability insurance option for those who normally may not pass the rigorous medical underwriting requirements usually required by disability insurance companies. 

Unfortunately, MassMutual doesn’t offer GSI policies. I don’t know what their logic is as to why they don’t. Instead, MassMutual offers generous exclusive discounts at certain dental residencies, which might appeal to specific professionals but lacks the broad appeal of Guardian’s GSI.

Guardian vs. MassMutual disability insurance: Key feature comparison

MassMutual advantages	Guardian advantages
Mental health benefits reset for each incident (vs. lifetime cap). RetireGuard contributes to retirement accounts during disability. Potential to receive 10% of premiums back annually after year six.	Extended waiver of premium (up to 6 months after returning to work). Serious Illness Supplemental Benefit (50% extra payout for cancer, stroke, or heart attack). Guaranteed Standard Issue policies (no medical underwriting required).

Should you choose Guardian or MassMutual disability insurance?

Both Guardian and MassMutual are industry leaders in disability insurance, and it’s hard to go wrong with either option. Unless one is offering to exclude a pre-existing condition or offers substandard terms like a limited benefit period, the right choice depends on your specific needs. Both companies provide strong coverage, and I would recommend either to a client based on their individual situation.