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Close the Gap with Multi-Life Disability Insurance

George Wilkins   |   May 2023   |   1-minute read
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The Background

Many employers struggle to retain key employees, and salary often isn’t enough. Adding benefits designed specifically for top earners is essential.

The Problem

Highly paid executives have the risk of getting priced out of group coverage disability plans. With many group plans capping the benefit at 60% of base salary (or up to $10,000 a month), executives who rely on a bonus may receive a smaller percentage of their total compensation if they become disabled. Without additional coverage, these executives are essentially being offered a lower level of benefits.

The Client

Five executives at a small firm earn a total annual salary (income plus bonus) ranging from $75,000-$350,000. Each of these executives is part of the company’s group plan, but none have individual DI. The group plan covers 60% of the base (excluding the bonus) up to $10,000 a month. The executives, however, consider that bonus as part of the salary.

Case Study Table no Multi Life

Why Multi-Life DI

A multi-life plan offers individual policies at multi-life rates, making it possible to apply for individual plans for all executives at once. In addition, employer-paid plans with at least five lives qualify for guaranteed simplified underwriting. Multi-life coverage added to the group plan goes a long way toward protecting the bonus along with the base salary.

The Result

For this business, we varied the size of the individual policies, increasing the percentage of each salary replacement, and doubling the income protection for each executive. These five cases resulted in an annual premium of $12,926, earning a stream of commissions for the advisor.

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Get Started

Multi-life cases work best for well-established businesses with five-100 key employees who make at least $100,000. Think about your current clients, and then submit the completed census form to our DI team. We’ll use it to help you design the best plan for the client.

Get started now.

About the Author

George Wilkins has one goal – to be your go-to partner for income protection. With his 20+ years of experience, George is able to restructure policies to maximize designs, benefit amounts and benefit periods.