While Group Long Term Disablity Insurance (LTD) can get employees a good base of protection - it's not going to solve all their income protection needs.
Talk to your Employer Groups about establishing a Voluntary LTD Buy-Up Program for their Employees
Let's get them up to 75%! Why?
For the average worker making under $100,000 per year - their take home pay is often higher than 60% of their pay.
For Example: A Married Individual making $75,000 per year roughly takes home 77.5% of their pay after taxes.
If their Group LTD program replaces 60% - that is an automatic decrease of pay of $13,188 per year. If the coverage is paid for by the employer - then they could see a potential further reduction of $6,546 for a total replacement of 51% of their Gross Pay.
For the Executive Team - a different issue presents itself - the benefit cap. Many Group LTD programs offer a Benefit Cap of $10k. For Individuals making more than $160,000 in income - they will see a less than 60% replacement of income. For an Individual making $250,000 - they could be looking at a replacement ratio of 48% of their income!
The benefits of a Corporate Buy-Up Plan are:
Simplified or Guaranteed Underwriting (based on employer size and participation)
For Employer-Sponsored Programs - we can offer Guaranteed Underwriting with 3 Lives
Individual Policies at Discounted Premiums!
Coverage can be tailored specifically for the Executive Team
Higher Replacement Ratio - potentially replacing 75% of an Employees Gross Pay.
Portability: A Corporate Buy-Up Program will allow employees to increase their coverage of the Individual Policy, if they are no longer employed or the company cancels the Group Policy.
What services DIPG Offers to Group Benefit Advisors:
A Tailored Benefit Portal for the Client
Customized Employee and Employer Communications
Online Enrollment and Quoting
RFP Handling from Multiple Carriers
Design and Strategy
No Reduction in Compensation - you will continue to receive the agent compensation
Have a conversation with your DIPG Brokerage Consultant, or reach out to: info@diprotect.com
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