A Disability Plan Shouldn't Leave Top Earners Out in the Cold

Are your clients trying to use group long term disability insurance to do it all? Most companies have a wide range of incomes to cover. But a one-size-fits-all strategy may not provide adequate income protection for all employees.

A typical LTD plan has a monthly benefit maximum that can leave some highly compensated employees with an income protection gap. In response, some groups try to increase benefit maximums to ensure enough coverage for their high earners. However, this strategy still might result in an income protection gap, while also affecting the premium rates for the entire group.

So how can you provide coverage that works for your clients’ entire workforce, including their highly compensated employees? Consider adding Guaranteed Standard Issue individual disability insurance.

A Bundling Success Story

We recently partnered with a broker representing an engineering firm. We worked together to understand the company’s disability needs. What did we find? Eighteen highly compensated employees with a significant coverage gap.

The company had provided Short Term Disability insurance through The Standard, but Life and LTD with another carrier. They switched to The Standard for Life and LTD, and purchased GSI, to address the gap in coverage. This brought them a 5% cross-sell discount on their GSI.

Taking a bundling approach left everybody a winner. The employer could feel confident employees now had the LTD coverage they needed and GSI closed the income protection gap for their highly compensated employees. Meanwhile, the broker had the opportunity to demonstrate his expertise to his customer and also gained a strategic advantage by adding GSI to his areas of expertise.

Partner With a Carrier

Work with a carrier-partner who can help you approach disability plans strategically to offer comprehensive solutions that meet the needs of each unique customer. Designing a holistic plan that combines LTD and GSI can leave your clients with two big advantages. They can provide adequate income protection for all employees. And, they can protect highly compensated employees from experiencing gaps in their income protection.

Need information on our options for GSI coverage? Explore our Guaranteed Standard Issue income protection insurance from The Standard.