Benchmarking: Common Characteristics of Employers Offering Supplemental Disability Insurance Plans

While over 50% of Fortune 500 Companies, across all industries, offer Supplemental Disability Insurance (IDI) plans, there are several industries that most commonly offer this benefit program to their employees. Supplemental IDI plans can be employer-paid, employee-paid, or shared contribution.

Employers in these industries share common characteristics:

• Incentive compensation is – or becoming - more prevalent in these industries and represents a sizable portion of employees income. Pharma/Biotech, Sales Organizations, Financial Services are examples.

  •   Most Group Long Term Disability (LTD) insurance plans only cover base salary by intent and design. In fact, 78% of Group LTD plans do not cover bonus compensation

• Employees in these industries have a considerable proportion of highly compensated employees.

  • Group LTD monthly benefit maximums may only protect a small percentage of income, much less than the intended 60% replacement target.

• Recruitment and retention of top talent is a central focus; and Employers in these industries are in a competitive environment with their peers for talent.

•  Employees, Executives and Partners in these industries have a strong understanding of the importance of disability insurance.  Notable industries include healthcare/physicians, law firms, and financial.

•  Employers offering Executive Employer-paid Supplemental Disability Insurance, already have a culture of rewarding top Executives with strong Executive Benefits in place, such as with Executive Life Insurance

•  Financial Wellness, including income protection, is a central focus of the Employer’s benefit package and messaging. 

Who are they?

·       Law Firms

·       Healthcare

·       Financial Services

·       Pharmaceutical & Bio Technologies

·       Manufacturing

·       Engineering

·       Accounting

·       Sales Organizations