Help your employees with today’s challenges: ACCESS LIFE FATIGUE TOOLKIT

Executive Benefits: Supplemental Long Term Disability Income

Financial Services

Protect your highly valued employees

Individual long-term disability complements group coverage to enhance total disability benefits. This additional coverage increases the percentage of income replacement while one is disabled. A combination of both supplemental and group disability plans is therefore an effective way for you to protect high income earners and their families.

Key Employee Benefits

By including enhanced disability, your key employees will receive the following benefits:

  • Protection that provides the highest level of income replacement, close to 75% income replacement
  • Catastrophic disability benefits that can achieve a total 100% of income replacement
  • Individually owned and fully portable coverage
  • Favorable definitions of own occupation
  • Customized solutions that can provide partial disability benefits, mental and nervous disorder coverage, and cost of living adjustments

Are Your Executives Covered?

Does your group long term disability plan really cover your executives’ total compensation? Consider the following example:

Jim earns $200,000 per year in total compensation. His group long-term disability plan covers 60% to $5,000 per month, or $60,000 per year. That leaves a $140,000 gap that supplemental disability income insurance can fill.

Why Isn’t Group Disability Enough?

  • Group disability is a great start; however, group disability plans present the following limitations:
  • Many plans only cover 50%-60% of income and high income earners are subject to benefit caps
  • May not cover bonuses, commissions, or incentive compensation
  • If the employer pays the premium, benefits could be treated as taxable income
  • Is not portable if you leave your current employer
  • May only cover you in your select occupation for a limited amount of time

Contact Chris Henderson, Managing Director of M3 Financial, to learn more.

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Investment advisory services offered through M3 Financial, a registered investment advisor and separate entity from M3 Insurance.

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