Income Coverage (Disability)

How to be prepared for the financial impact of a partner and/or key executive’s long-term disability.

In today’s competitive landscape, ensuring your key talent’s financial security is paramount. Executive disability insurance plays a pivotal role in both attracting and retaining top executives. It not only showcases your dedication to their well-being but also helps mitigate risk, fosters loyalty, and offers a competitive advantage to your benefit package.

An employer’s group LTD coverage is crucial to align coverage for highly compensated executives with other employees. Solely relying on Group LTD for high-income earners, can leave a material protection gap for high-earning executives. Our three tiered approach helps to address the common reverse discrimination often found when relying on group LTD alone.

Group LTD coverage

• Cost-effectiveness: Employers secure quality insurance at a reduced premium due to the collective bargaining power of their employees.
• Guaranteed issue: Often, a guaranteed issue is available where the individual only needs to confirm their employment status, making it easily accessible.
• Unisex pricing advantage: Unlike the open market, it offers equal pricing, sidestepping gender-based premium disparities.

Individual Disability Insurance (IDI)

Group LTD can be complemented with individual policies to help enhance coverage for highly compensated employees. Unlike group coverage, Individual Disability Insurance (IDI) is tailored for specific individuals and offers versatile coverage, replacing higher income, commissions, and bonuses, while also being portable and providing better benefits through individual underwriting, albeit at higher premiums.

Lloyd’s of London Solution (EDI – Excess Disability Insurance)

• Partnering with Lloyd’s of London can make it possible to ensure 60%-65% monthly income replacement for high earners, allowing coverage levels as high as $50,000-$100,000 or more.
• It is important to design a plan that can stand the test of time and while some Lloyd’s cover-holders have been willing to issue as much as $250,000 in monthly benefit, one claim can devastate the plan, making it difficult to renew without significant rate increases.