Record Breaking Benefit

It has never been a better time for an Employer to offer a Supplemental Disability Insurance Benefit Plan.

Employers have caught on to the importance of this benefit offering.  

Demand is incredibly high as evidenced by the top insurance carriers demonstrating multiple record-breaking sales years in a row…  in an inflationary market!

Why should Employers offer a Supplemental Disability Insurance Benefit Plan? Simply put, Group LTD alone does not pay an adequate benefit.

 While traditional Group LTD provides a base level of income protection, Group LTD might not meet the unique financial needs of an Employer’s diverse population. Employees that are commission-based, receive bonus compensation, or are highly compensated, may have a sizable portion of their income unprotected.

 Employees struggle during a disability to cover expenses that are important to them because of Group LTD plan design limits and gaps in coverage. With a reduced income, employees still need to:

·        Cover mortgage or rent payments.

·        Pay for childcare.

·        Meet monthly bill obligations such as grocery, clothing, entertainment, or children’s sporting and activity tuitions.

·        Pay non-reimbursed medical bills and out of pocket medical expenses.

·        Continue funding a retirement savings account.

·        Continue college savings for children.

·        Repay student loans or other debt.

 A Supplemental Disability Insurance Benefit Plan is essential to provide strong financial protection levels to a diverse employee population.

Common reasons Employers offer Supplemental Disability Insurance Benefit Plans include:

·        Enhance coverage without increasing risk to Group LTD plan.

o   Protect other forms of income such as bonuses, commissions, deferred compensation.

o   Supplement the Group LTD benefit maximum.

o   Increase replacement percentage to 75%.

·        Provide an Executive Benefit Plan.

·        Provide a new benefit program that is affordable.

·        Offer a plan that is easy to implement and administer.

May is Disability Insurance Awareness Month, and a fantastic opportunity to explore offering a Supplemental Disability Insurance Benefit Plan as a new employee benefit.