A sound benefits program that includes disability insurance is an efficient way to protect an executive's income when he or she needs it most. Companies also improve employee retention with the inclusion of disability benefits.

Such a wide variety of disability plans exist that it is wise to discuss the options with your benefits consultant. A brief explanation follows:

Contrast Group vs. Individual

• Cost to insure all employees on a group basis is less with group than individual coverage
• Group plans are easier to administer (no underwriting issues/no individual applications)
• Most plans will integrate with other sources of disability benefits
• Carriers typically only guarantee rates for the first two years of a plan
• Only protects base salaries; could leave sizable portion of total compensation uncovered

Individual plans allow you to create a personalized disability program to meet the income protections needs of your employees. Individual plans define disability more generously with regard to age; pay in more claims scenarios; and offer optional features such as residual and survivor benefits. Generally, these plans are non-cancelable and guaranteed renewable with premiums and contract language guaranteed until age 65.

Combination Disability Plans

If concerned that group plans discriminate against higher-earning executives, opt for a combination plan. You can protect the income of all your employees, while offering added benefits to your higher-earning executives. An increasing number of companies are instituting these supplemental disability benefits to attract and retain key employees.

Now is the time to leverage all the assets a well-designed benefits program can offer—from SERPS and Deferred Compensation Programs to Long-term Care and Supplemental Disability. And more.

Permit Clark Consulting to develop and finance the appropriate program for your organization.