When approaching organizations with high income earners, it's important to recognize that the successful installment of a Multi-Life Guaranteed Standard Issue (GSI) program is highly process driven. If you want to look sophisticated and have the highest level of participation in a plan, you'll need a basic education of the product and a trusted partner in this space.
To help you with your education process, below are the top 5 frequently asked questions we receive regarding our GSI product:
If your client has exhausted the domestic markets with a Group LTD and Supplemental IDI plan and still has a gap in coverage, an additional layer can be added to their policy through Lloyd's of London. This product is designed to deliver up to an additional $100,000 per month of disability income insurance and is used to close the benefit gap, thus protecting the lifestyle and future earning potential of those in the C-Suite in the event a disability occurs.
2. Is this a one-size fits all policy or are there different options?
There are several different program types: mandatory, mandatory with buy-up, opt-out, and voluntary plans. Important factors for designing the right plan are understanding the eligible class and the sponsoring company's benefit philosophy for their key contributors.
3. What are the advantages of a Multi-Life GSI policy?
One of the major pluses of a Multi-Life GSI policy is that the buyers of these programs can use their leveraged buying power to negotiate discounted rates, more attractive policy provisions and even eliminate the need for medical underwriting.
4. How many lives do you need to qualify for a Multi-Life GSI policy?
The short answer is: it depends. It is predicated on the census and the program type. Some plans have a required number of eligible individuals as low as three. For voluntary programs, the gaps in income replacement and the level of engagement with the individuals in the eligible group can have a bigger impact on an offer than the actual number of eligible participants.
5. It took a significant time to enroll the Supplemental IDI program. Is there an easy or fast enrollment method available for the Lloyd's piece?
At Exceptional Risk Advisors, we have developed an online enrollment, education and communication strategy to help expedite the enrollment process and eliminate errors. Additionally, it is possible to enroll a domestic program in tandem with the Lloyd's program.
If you have more questions on Multi-Life Guaranteed Standard Issue, we will be hosting a webinar in February, presented by Laura Muka. Please keep an eye out for communications in the next few weeks to sign-up. In the meantime, please download our article "Benefit Equalization for the Highly Compensated" to learn how you can thrive in the Lloyd's high limit guaranteed standard issue arena.