Watch the Gap! Recalibrating Income Protection Benefits for Highly Compensated Employees outlines actions employers can take to maximize the value of their income protection programs.
For example, group long-term disability plans typically cover 60% of an employee’s base salary before tax, but they often do not cover incentive compensation such as bonuses and commissions. They also typically have a maximum benefit cap. Similar limitations are found when it comes to life insurance, as the coverage needs of the highly compensated may often exceed group plan maximums. More than half of these higher wage earners say they are very concerned about the financial effects of a loss of income in the event of a disability and/or premature death.
To help close this gap in coverage, Cynthia Smith, vice president, Executive Benefits Sales, MetLife, said the resource suggests employers look at adding an individual disability income (IDI) policy to complement the group long-term disability benefit as well as consider implementing a group variable universal life (GVUL) program. The resource describes how.The resource is available at http://www.metlife.com/executivebenefits.