Employers often provide disability insurance to their employees to protect their earnings in the event of an injury or illness by way of a highly competitive benefits package or a voluntary benefit program. However, the domestic disability carriers have limitations on the amount of insurance they are willing to provide, thus leaving the C-Suite with a huge gap in disability coverage.
Group long-term disability income insurance typically offers the insured party 60% of their base pay to a maximum of $15,000 per month. For the C-Suite, who are often earning in excess of $1,000,000 per year, if they became suddenly disabled their income would drop by over 80%.
There is a second domestic solution, in the form of individual disability insurance offered on a Multi-Life Guaranteed Standard Issue (GSI) bases. This second layer can provide significant discounts, medical underwriting concessions and can increase disability income protection to a combined $30,000 per month. The second layer softens the blow for the C-Suite, but there is still a significant gap in coverage.
For those in the C-Suite who still need additional coverage, there is an excess disability income product offered by 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.