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Group LTD Plans Discriminate Against High Earning Employees and Key Executives

Very often group LTD plans will fall short or even reverse discriminate against high earning employees and key executives. What is the best way to make up for this shortfall when your group LTD coverage isn’t enough? An employer sponsored guaranteed issue disability program.

Implementation

Konikow secure and implemented a guaranteed issue disability program with:

• No medical underwriting
• No financial underwriting
• Permanent non-cancelable portable coverage
• Rates and benefits guaranteed never to change
• Coverage in “own occupation” for full benefit period
• Voluntary or employer paid or both by carving out key people

 

Results

Over 50% employee participation

A firm with an existing LTD plan was able to secure a guaranteed issue monthly benefit of $4,000. The firm chose to pay for 11 key executives and offer the program on a voluntary basis to all other employees