The Great Investment - 1%

Would you spend less than 1% of your paycheck to protect it, if you had a 25% chance of losing 40% or more of your paycheck for 4.5 years?

The average duration of a long-term disability (LTD) claim for a highly compensated employee is 4.5 years; compared to 2.5 years for a rank-and-file employee.  Working Americans have a 25% chance of suffering from a disability during their working years, lasting over 90 days (with an average duration ranging from 2.5 to 4.5 years).  

Employer’s Group Long-Term Disability (LTD) plans typically replace 60% of base salary at best.  Many highly compensated employees are not fully protected by the Group LTD plan, due to plan benefit maximums, uncovered compensation such as bonus income, and the benefit being taxable in most situations. This can easily leave highly compensated employees with 10-30% income protection.

Employer-sponsored Supplemental LTD plans – often called Supplemental IDI - can enhance coverage levels in the event of a disability, at a modest cost to the employer – typically costing less than 1% of compensation.