A Fresh Look at Guaranteed Standard Issue for High Earners

In today's world, protecting income is essential - especially for groups of highly compensated professionals.  One of the most effective insurance solutions available to meet this need is the High Limit Disability Guaranteed Standard Issue (GSI) plan. This blog post explores the benefits of GSI, the process involved, and the importance of partnering with experts to ensure successful plan implementation.

What is GSI?

Guaranteed Standard Issue (GSI) plans are designed to provide high-income earners with enhanced disability coverage that goes beyond the limitations of traditional group plans. Typically, the underwriting process is simple, requiring only two key questions:

1. Have you been actively at work in the last 180 days?
2. Have you been hospitalized or homebound in the last 180 days?

Benefits departments often recognize that top earners are significantly underinsured through standard group long-term disability (LTD) policies and, in some cases, domestic supplemental individual disability insurance (IDI) programs. High Limit GSI plans offered through Lloyd's of London, help bridge this coverage gap by providing additional income protection.

Click Here for a Quick GSI Overview

Enhancing Existing Disability Coverage

Most companies already offer group long-term disability (LTD) insurance, and some supplement this with multi-life individual disability policies. However, adding a GSI Excess Disability Benefit layer ensures that high earners, making up to $1,000,000 annually, can secure up to 60% income replacement. This results in a comprehensive coverage solution for high-income groups.

A Real-World Example: Bay Area Asset Management Firm

To illustrate how a GSI plan can make a difference, consider our recent work with an asset management firm in the Bay Area. Despite having both Group LTD and Supplemental IDI plans in place, the firm’s highest earners were still underinsured, with less than a 40% income replacement ratio. We stepped in to design a solution that boosted their income replacement to the ideal 60%.

Through a multi-life GSI policy, Exceptional Risk Advisors provided an additional $25,000 per month in disability coverage for qualifying employees. The employer sponsored the plan, and the enrollment process was streamlined using an employer application.

Read the Full Case Study Here

The Importance of a Specialist Approach

Successfully implementing GSI programs for organizations requires a strategic, process-driven approach. For high participation rates and seamless enrollment, it's crucial to partner with specialists who understand the nuances of high-limit disability insurance. These experts utilize best practices to design and enroll comprehensive plans, ensuring the highest possible outcomes.

Why Choose Exceptional Risk Advisors?

1. Exceptional Customer Service: Our dedicated team is here to support you and your clients every step of the way.
2. Years of Experience: With over 25 years in the GSI market, we bring a wealth of knowledge and expertise.
3. High Enrollment Rates: We consistently achieve high participation rates, ensuring your clients get the coverage they need.
4. Dual Enrollment Online Platform: We developed an online enrollment, education, and communication strategy to help expedite the enrollment process, eliminate errors, and boost participation rate.

As income protection becomes a higher priority for professionals and organizations, Guaranteed Standard Issue (GSI) plans provide a critical solution. These plans bridge the gap in coverage for highly compensated employees, offering comprehensive protection. By partnering with experts like Exceptional Risk Advisors, companies can ensure the successful implementation of GSI plans and provide peace of mind for their top earners.