Executives like CEOs, COOs, and Presidents of any organization run the risk of disability throughout their working life. It’s due to their nature of the job that they are constantly under pressure and stress-related illness, which makes them more inclined toward long-term disability.
Many employers are escalating executive benefit packages to protect the top talent of their companies. Supplemental disability insurance makes sense for executives as premiums are less expensive and the coverage from personal funds are not subject to income tax.
Why executives should have supplemental disability insurance
Future is unpredictable. So, disability insurance is a must-have for everyone. It doesn’t matter whether you’re a top notch executive or a labor of your organization, disability insurance will give you protection in your hard times. As I said, supplemental disability insurance has great benefits in store for the executives of a company. So, now, let’s find out what are the benefits the executives will get if they have a supplemental disability insurance?1. Bridges the gap
Most highly paid executives are unaware of the fact that their employer-sponsored long-term disability (LTD), which is 60% of their salary, leaves them exposed to a huge income gap. Consider this example: An employer-sponsored LTD program will give you 60% of your salary as the disability benefit. But, the maximum benefit amount is $5,000 monthly. If executives earn an annual salary of $150,000, 60% of the monthly salary of these officials will be $7,500, which is less than the maximum benefit amount of $5,000 monthly. In this case, executives are in a disadvantaged position if their sole source of income is the employer-sponsored disability benefit. Having a supplemental disability insurance can fill this gap and will provide the top employees with an extra layer of financial protection. Unlike most group long-term disability plans, supplemental disability insurance seen as a tax-free benefit.2. Provides additional advantages over employer-sponsored LTD programs
Supplemental disability insurance policy is a portable plan. That is, if you leave your current employer, you can take your individual policy along with you. Moreover, the benefits that you get are tax free and non-cancelable. Hence, it’s seen that supplemental disability insurance has a considerable amount of benefits over the employer-sponsored long-term disability program.3. Group discounts may be applicable
The value of supplemental disability insurance coverage stretches to all company executives. If all the executives of a company participate in the same supplemental coverage, they’ll get more advantages. For instance, if three or more executives purchase the same supplemental disability coverage, the carrier may offer a multi-life premium discount. Are you a top executive of your company? If yes, then you may consider the benefits of having a supplemental disability insurance coverage. For more information, check out:Blog Category