Many companies, and their executives, have come to realize that Group Long Term Disability Plans no longer meet the needs of the executives and other key personnel in the organization. An assessment of your current plan may lead to the conclusion that revisions are necessary in order to ensure benefit levels are adequate and appropriate, and that contractual provisions are in-line with your objectives.

Why do Group Long-Term Disability (LTD) Plans Fail to Meet the Needs of Executives?

Reverse discrimination results from income limitationsBenefit maximum (cap)Inability to insure retirement plan contributionsInability to insure incentive-based compensationInherent instability of group plans can result in unexpected changes in cost and coverage provided

There are solutions available to assist the organization in retaining and providing incentives for their executives. The prevalence of "combination" plans is growing, particularly as increases in executive and key personnel incomes have exceeded the benefit limits provided through a group only approach. A combination plan takes advantage of both group and individual disability products working in tandem. Some common Executive LTD objectives that can often be obtained through this strategy include:

Providing comprehensive and coordinated benefits to executives and key personnelOptimize benefits and costs using the most effective combination of group and individual productsMaximize target benefit level of "total" compensation - often to $30,000 per monthGuarantee policy provisions and benefit levels over timeProvide rate stabilityMinimize impact of group LTD claimsProvide guaranteed cost structure through individual policiesFacilitate acquisition of comprehensive individual policies using the highest level of available guarantee-issue coverageCreate enhanced return to work benefits during partial disability and/or following full recoveryProvide enhanced benefits for catastrophic loss