An Advisors' Guide to Excess & Surplus Disability Insurance

How to Fully Insure the C-Suite with a Multi-Life Guaranteed Standard Issue (GSI) Disability Policy?

Posted Thu, Jul, 5th, 2018
By Exceptional Risk Advisors

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.

Click here to download a case study on a recent GSI placement for a national law firm