Take Care of Your High Earners With Comprehensive Disability Plans

Who doesn’t agree that every employee should find value and protection in their benefits package? But when it comes to income protection in the event of a disability, high earners are a group of employees who are sometimes overlooked.

How can you provide the right mix of benefits for these employees? Include individual disability insurance, provided on a guaranteed standard issue basis.

A Coverage Blend for Highly Compensated Employees

Many employers do a good job of offering group long term disability insurance. This type of plan provides most employees with solid protection. It's usually 40-60% of an employee’s base salary up to a specified monthly maximum.

However, coverage caps often limit disability benefits for top talent. And group long term disability insurance often doesn’t cover incentive and bonus pay. These factors may leave your high-earning employees with an income protection gap if they face an illness or injury that keeps them out of work for a while.

High earners have unique needs that require more protection. Combining a long term disability plan with GSI individual disability insurance can provide high-earning employees benefits comparable to the rest of the workforce if they become disabled, providing them enough replacement income coverage to pay their bills and maintain their lifestyles.

What Helps Employees Can Help Your Company

It’s never good when an employee faces a disabling event. But if that employee learns they weren’t adequately insured, it can make a bad situation worse. That’s why it’s important to have a strategic approach to disability coverage that also adequately protects highly compensated employees.

Offering a long term disability plan with GSI individual disability insurance might also give you a talent advantage. Companies are always competing to attract and retain highly skilled employees. The risk of losing top talent due to inadequate coverage could cost you a lot, while the price of a GSI individual disability insurance is most likely minimal.

What's in a Guaranteed Standard Issue Individual Disability Insurance Policy?

These specialized plans include features you can customize for your group’s needs. You’ll find most policies will have the following provisions:

• Complete portability. The employee will own their policy. They can take it with them throughout their career with no changes to the policy or premium rates. It's another smart way to support key employees or executives, even if they move on to a new employer one day.
• “Own occupation” definition of total disability. The own occupation definition of total disability can be a good choice for companies with highly specialized employees. A policy with an own occupation definition of total disability will pay a benefit if a covered employee can’t complete the duties of their role, even if they can work in another job.
• Set rates. A noncancelable policy provision ensures that a carrier can’t change premium rates before a policy’s end date as long as premiums are paid on time. Premium rates are based on the employee’s age at the time of purchase. Rates can't be raised for the lifetime of the policy. Of course, premiums will increase if the employee increases coverage.
• Benefits to care for sick family members. Look for a policy that includes a family caregiving benefit that pays if an employee must take time from work to care for a family member with a serious health condition.

Show Highly Compensated Employees You’re Looking Out for Them

Preparing for an illness or injury that disables a key employee should be part of every employer’s business planning. Employees tend to be more loyal to organizations that keep their best interests in mind — especially through financial support.

Providing benefits for highly compensated employees that include GSI individual disability insurance can help protect key employees from financial disruption if they become disabled. Providing this type of policy can help you stand out, showing your company values and protects its employees.

Interested in how we can help you best cover your highly paid employees? Learn more about our Guaranteed Standard Issue income protection options.