A Discriminating Gap

Highly compensated individuals are often left under-insured when it comes to income protection.

Many people are not aware there is a gap in their income preplacement plan. The higher the income, the lower the percentage of income covered! This is referred to as reverse discrimination.

The High Limit Disability plans have been developed specifically to meet the needs of high-income earners. To properly insure a highly compensated individual at 65% to 75% of income, multiple disability income policies are often required and are layered or “tiered” to provide sufficient coverage.

Pitfalls of Group LTD Plans

Most LTD plans do not always cover compensation other than W-2 income. Bonus income, commission income, and K-1 income are times left uninsured via a group LTD plan.

A firm may indeed have a Group LTD plan in place for the employees of an entire firm. However, a typical partner sponsored LTD plan even combined with a supplemental LTD plan has limitations as to the maximum monthly benefit it will pay out. This cap on the monthly benefit is often too low to replace the proper amount of income for the well compensated employees of the firm.

There are two basic questions to answer to ascertain if you are adequately covered by your current plan:

What percentage of your total compensation is covered by your disability insurance plan(s)?

Does your group LTD plan include a true “own occupation” definition?

If you cannot answer these questions accurately and with confidence we invite you to request a meeting with a professional who can help you answer them.

Without prejudice or warning

Nobody is impervious to a disability. They strike without prejudice or warning. Your ability to earn an income is likely your most valuable – and vulnerable – asset. The following graph is data from a top U.S. law firm. Even with premiere group DI benefits, 48% of the partners were underinsured. Some of the partners had less the 40% income protection.

Up To 75% of Income

Our plans do not intend to compete with traditional disability carriers; we aim to supplement coverage where needed, and to offer coverage when other carriers cannot. In participation with another disability insurance plan already in place, we can create a plan to insure a person for up to 75% of their income and has issue limits of $50,000 per month or more!

We understand that not all people and certainly not all groups are the same; therefore, if your firm has special requirements, we will design a custom group insurance plan.

A tiered approach to adequate income protection

Proper income protection often requires the use of more than a single disability insurance policy. This supplemental disability insurance plan fills in the deficiencies of not only group LTD coverage, but individual, standalone policies as well. Coverage will often take the following format:

Benefits

• Guaranteed-Issue - No Medical Questions.
• Up to $250,000 per month, per person.
• Up to $10,000,000 Career Ending Benefit.
• Elimination periods - 90, 180, or 365 days.
• Benefit periods - 60, 84, and 120 months.
• 5 Year Term of Insurance.
• “Own Occupation” definition including specialty.
• 3/12 Pre-Existing Condition Exclusion.

• Optional Residual Benefit Rider
• Optional COLA Rider
• Presumptive Disability
• Survivor Benefit
• Transplant Benefit

• Recurrent Disability
• Automatic Benefit Increases
• Waiver of Premium
• Rehabilitation Benefit
• Mandatory or Voluntary