Reverse Discrimination for Highly Compensated Executives
There are four major problems for every highly compensated executive when it comes to the group disability insurance (Group LTD) they rely on to protect their income.
The monthly benefit is capped (usually $10,000 per month)
If the employer pays for the benefit, benefits are received taxable at the claim.
Bonus, Commissions, and Incentive Compensation may not be included.
If you leave your job, you lose your coverage
How To Make Up The Difference with Supplemental Disability Insurance
The higher your overall income is, the worse the reverse discrimination is going to be for you. If you make $150,000 a year, and your Group LTD has a maximum of $5,000 pr/month, you are only going to collect $5,000 a month during your claim. You are also going to have to pay taxes on that $5,000 per month! If you make $500,000 a year, you are still only going to collect 5 or 10,000 per month during a claim. So the higher your income is, the lower your percentage replacement of income during a claim is. Nobody making $500,000 a year is getting anywhere near the 60% income replacement you may have thought you have in your Group LTD plan at work.
Guardian offers you the ability to purchase a personally owned supplemental disability insurance policy to help increase your overall percentage income replacement during a sickness or injury. Depending on your income, you could get up to an additional $30,000 a month in protection (in addition to benefits received from the Group LTD).
Benefits to Guardian Supplemental Disability Insurance For Executives
The Provider Choice policy offered by the Guardian1 is one of the best disability insurance contracts available today for an executive. All of the benefits in the contract are significantly more comprehensive than those offered in your Group LTD at work, allowing Guardian1 to pay you benefits earlier, in more scenarios, and longer. As an executive with a larger income, it is just not responsible for you or your family to only rely on the coverage offered by your employer. One could argue that your ability to earn an income is one of your greatest assets, so you should want to protect that asset with a high-end disability insurance policy.
A supplemental policy will solve all 4 of the major problems outlined above;
Guardian1 can offer up to an additional $30,000 more per month.
Benefits received are tax-free during a claim because you paid for this with your own after-tax dollars.
Bonus, Commission, and Incentive compensation is covered.
This policy is completely portable should you ever leave your current employer, just take it with you.
1Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state.