LMC Insurance & Risk Management
  • About Us
    • Leadership
    • Wisconsin Office
    • Accessibility
  • For Business
    • Property Casualty
    • Employee Benefits >
      • Iowa Health Insurance Pool
      • Share to Compare
    • Financial Services
    • Surety Bonds
    • Risk Management
    • Cyber Security
    • Executive and Owner Risk Management
  • Industries
    • Construction
    • Healthcare
    • Higher Education and Nonprofits
    • Hospitality
    • Manufacturing
    • Petroleum
  • Personal
  • Contact Us
    • Report A Claim
    • Iowa
    • Wisconsin
  • Careers
    • Open Positions
  • Online Tools
  • Blog
  • About Us
    • Leadership
    • Wisconsin Office
    • Accessibility
  • For Business
    • Property Casualty
    • Employee Benefits >
      • Iowa Health Insurance Pool
      • Share to Compare
    • Financial Services
    • Surety Bonds
    • Risk Management
    • Cyber Security
    • Executive and Owner Risk Management
  • Industries
    • Construction
    • Healthcare
    • Higher Education and Nonprofits
    • Hospitality
    • Manufacturing
    • Petroleum
  • Personal
  • Contact Us
    • Report A Claim
    • Iowa
    • Wisconsin
  • Careers
    • Open Positions
  • Online Tools
  • Blog

Welcome to the LMC Blog

Disability benefits: are your executives adequately protected?

6/29/2020

 
Disability benefits - LMC
Typically, employers rely on generous compensation package to attract and retain key employees. However, the important role employee benefits play is often underestimated. In fact, employee benefits are a powerful part of any employee’s compensation, including highly compensated employees.

Having a high income does not preclude concern about personal financial risk. MetLife’s Annual Employee Benefit Trends study reveals that 42% of highly compensated employees are very concerned about the financial effects of a loss of income in the event of a disability.
What employers may not realize is that highly compensated employees could be at a disadvantage when it comes to employer-provided group benefits – especially income protection benefits. Typical group income protection benefit plans fall short for highly compensated employees, exposing them to critical coverage gaps.

An executive carve-out program is one cost effective solution. This strategy creates a pool of highly compensated employees and provides higher coverages and tax advantages, while leaving the group plan untouched.

Individual disability income protection is another option. When combined with a group long term disability plan, an individual disability income policy provides employees an opportunity to insure income beyond the group plan maximum. These policies are portable and can often be customized with options such as cost of living adjustments and /or catastrophic disability benefits.

Benefit maximums, tax implications, and covered compensation limitations can result in benefits that are far less than expected at claim time. Carve out and individual programs are an efficient way to solve the challenge without straining the benefits budget or resources.

Employers that recognize and take steps to close the coverage gap not only help to satisfy and retain key employees, they have an advantage when competing for critical talent.

Learn more about LMC's executive benefit programs.

Comments are closed.
    We're here to help.
    ​1-800-677-1529
    ​
    Email Us
    Follow @lmc_insurance

    Categories

    All
    Compliance
    Construction
    COVID 19
    COVID-19
    Cyber Security
    Directors And Officers
    Employee Benefits
    Executive Benefits
    Healthcare
    Higher Education
    Human Resources
    Manufacturing
    News
    Personal Insurance
    Property And Casualty
    Risk Management
    Wellness
    Workers Compensation

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    October 2017
    August 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017

    While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or change circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
LMC Insurance & Risk Management
​About   |   Blog   |   Contact

Iowa
4200 University Ave, Suite 200 
West Des Moines, IA 50266-5945
Wisconsin
8500 Greenway Blvd., Suite 201
​Middleton, WI 53562
 © 2021 LMC Insurance & Risk Management. All rights reserved. Privacy policy.