Solving the Income Protection Gap Problem with Executive Disability Insurance

The potential need for disability insurance is not one the average American can see or feel in their everyday lives like they do with health insurance (ie. picking up prescriptions from their pharmacy). The need for disability insurance is often not considered until after it’s already needed.

At the basic level, disability insurance is designed to replace a portion of your income if you cannot work due to illness or injury. The stakes for executives and top-level employees are exceptionally high as their income often exceeds the limits of standard group long-term disability (LTD) plans, creating a significant income protection gap.

Key takeaways

1. 1. Many highly compensated employees are at risk of an income protection gap within their employer’s group long-term disability coverage.
   2. Businesses and their benefits producers often ignore this gap until after an executive must go out on a claim, leading to lost income for the employee or costly self-funding by the employer.
   3. Executive disability insurance can fill the income protection gap by providing comprehensive coverage tailored for high-earning employees.