Carve-out Disability Insurance

Traditional group long term disability insurance programs typically cover up to 66% of income in case of disability.

It is important to keep in mind that group policies tend to cover base salary up to a monthly dollar limit which is far below the monthly earnings of some highly compensated executives. So while you're key people may be under the impression that in the case of a disability they will get a sufficient part of their income replaced , the hard reality may be far different.

In some cases the group plan may cover as little as 10% or less of a highly compensated executive's income.

A Carve-out Disability insurance program for your top earners can restore the benefits to sufficiently protect against this potentially devestating risk.

Carve-out Disability programs can be designed to:

  • Include incentive compensation as well as base salary
  • Define disability for some of your specialists that may be more favorable
  • Voluntary benefit or company paid