Inflation and the 60% Paycheck

The American worker has been financially struggling for a long time. Most Americans, even those earning over $100,000/year, have been living paycheck to paycheck.

With inflation, the struggles are worse and very real.

The full paycheck - 100% of base and bonus - is no longer enough to pay the bills, never mind meeting other financial goals.

If faced with a sickness or accident, most Employer’s Group Long-Term Disability (LTD) Insurance plans only replaces 60% of base salary. Due to LTD plan design limitations, highly compensated employees and Executives might only receive 25-45% replacement, or less. Why?

·       Benefit maximums limit benefit payments.

·       Benefits might be taxable if the Employer pays the premium; and

·       LTD plans do not cover bonus compensation 78% of the time.

The American worker cannot meet financial obligations with only 60% of base pay…. Or less.

To help address and avoid financial devastation during a disability, employers should modernize their long-term disability insurance plan. Employers should consider offering their employees a Disability Insurance plan that provides 75%-80% replacement and protects total compensation.

 Navis Benefits Group, LLC, specializes in Supplemental Long-Term Disability Insurance plans. These plans can protect up to 80% of total compensation for highly compensated employees, and Executives. Employers can offer a Supplemental LTD plan on either an Employer-paid carve-out basis, or an Employee-paid payroll deduct basis.