Advantages of our System
Advantages of
Executive Disability
At our brokerage, we recognize the importance of safeguarding executives against the financial impact of disability. Our disability insurance plans provide income protection and peace of mind, ensuring that executives can maintain their standard of living even if they are unable to work due to illness or injury. Benefits of our disability insurance plans:
- Can be guaranteed issue with no health questions or financials needed Replacement income during disability beyond what a group plan offers Partial disability coverage.
- Flexible waiting periods and benefit periods.
- Rehabilitation and return-to-work support.
- Optional cost-of-living adjustment.
- Guaranteed renewability.
Reach out to our knowledgeable agents to discover the right disability insurance solution for you and your executive clients.
Advantages of
Executive Life
Our brokerage offers comprehensive life insurance plans tailored to meet the specific needs of executives. We understand the importance of protecting the financial security of individuals and their families in the event of unforeseen circumstances.
Key features of our life insurance plans:
- Can be guaranteed issue with no health questions.
- Flexible coverage options.
- Competitive premiums.
- Customizable policy terms.
- Accidental death and dismemberment coverage.
- Accelerated death benefit.
- Estate planning benefits.
Contact our agents today to learn more about our life insurance offerings and how we can help protect your future.
Advantages of
Guaranteed Standard Issue for Executives
- Personalized Coverage: Guaranteed Standard Issue (GSI) disability insurance allows executives to obtain personalized coverage based on their specific needs and financial situation. Unlike group disability policies, GSI offers more flexibility in terms of benefit amounts, waiting periods, and benefit periods, allowing executives to customize their coverage to suit their individual circumstances.
- Higher Benefit Amounts: Group disability policies typically have limitations on benefit amounts, often capping the coverage at a certain percentage of the executive’s salary. GSI disability insurance, on the other hand, can provide higher benefit amounts, ensuring executives have adequate income replacement in the event of disability. This allows them to maintain their lifestyle and financial obligations without significant financial strain.
- Portable Coverage: Group disability policies are typically tied to the employer, meaning that if an executive changes jobs, their coverage may be lost or reduced. GSI disability insurance is portable, meaning the coverage stays with the executive regardless of employment changes. This provides executives with greater security and peace of mind, knowing that their disability coverage remains intact even if they transition to a new organization or start their own business.
- Underwriting Advantages: GSI disability insurance often includes simplified underwriting or even guaranteed acceptance, meaning executives can secure coverage without extensive medical underwriting or health assessments. This can be particularly beneficial for executives with pre-existing health conditions, as they may find it challenging to obtain adequate coverage through traditional individual disability insurance policies.
- Supplemental Coverage: Executives often have group disability insurance through their employer, but these policies may have limitations in terms of benefit duration and coverage scope. GSI disability insurance can be used to supplement the group policy, providing additional coverage and filling any gaps in protection. This ensures executives have comprehensive disability insurance that adequately safeguards their income and financial well-being.
- Flexibility and Control: GSI disability insurance gives executives greater control over their coverage. They can choose the specific terms, riders, and options that align with their needs, such as cost-of-living adjustments, residual or partial disability coverage, or future purchase options. This level of flexibility empowers executives to design a comprehensive disability insurance plan that caters to their unique requirements.
Advantages for
You the Broker
Case Study #1: Large Company
Large Manufacturing company on NYSE. Was presented with design that currently had them insuring 60% to $10,000 per month covering base salary only for disability and Life to two-time salary to $500,000.
We began with a review of the company culture as it pertained to executive plan design, which differed from other plans, as well as discrimination of design for higher wage earners based on caps.
Two solutions were presented.
The first involved simply increasing the group cap to $20,000 for LTD and $1,500,000 for the group. The biggest issue was a large gap for senior management still remained and the overall cost of the group plan on a per person basis increased.
The second solution involved looking at total compensation including a 2 or 3 year average of bonus income in design (for this group bonuses ranged from $20,000-1,000000).
We would then change group LTD to an $18,000 cap which would solve any issues for all except the top 15-30. They would layer guaranteed issue individual disability coverage on top of group to what we could get. (in this case we got $3,000 to start and have increased over time. On the group side we not only had to deal with 15-30 senior management, but at the next level when you added bonus (so 75-100 people).
Here, we recommended if they want to design something different, we used an executive guaranteed issue individual UL product that is minimum funded. The carrier was willing to give us up to $3,500,000 of coverage which took care of almost all employees.
Total premium for both plans was about $110,000.
After discussion with CFO, we designed a presentation for the CFO to present to the board and second option was approved and implemented.
Total First Year Commission on the case was roughly $45,000.
Case Study #2: Small Company
This is a small nonprofit organization with 34 employees.
First step was to meet with them and their group rep to discuss what they did, how they were structured and what their employees looked like.
When we reviewed benefits, because disability was a function of what they did, it was abundantly important to them.
As we reviewed the benefits their group life plan covered on times salary to $250,000 and they felt that was appropriate for what they wanted for their employees.
The group disability plan was 60% of salary to a $5,000 maximum. As we discussed this, we determined variable compensation went only to director level and above but obviously was not covered by Group LTD.
Based on income and employee levels we had 6 employees who were over the cap by salary and another 3 over the cap when a bonus is added. We discussed what their end goal was, and they felt about 85-90% of total net income was appropriate, however, they did not want any of their employees to be declined for coverage since it was going to be employer paid.
We looked an both a group and individual option, and the flexibility of taking coverage with them as well as locking in premium was important. Definitions being specific to roles was also an important feature.
After review, we ended up with an individual plan with a formula that covered salary plus an average of 2 years bonus. The formula was 60% of total compensation minus the group LTD with a $5,000 guarantee issue cap.
Total premium was $22,000.
Since this plan started 7 of the people have actually left 2 have kept their individual and another $18,000 has been added to first year premium.
Total First Year Commission on this case was roughly $16,000.
Advantages of
EBBR Support
Tier One: Advisory
- Initial discussions and fact-finding.
- Consultation.
- Design of optional plans for discussion and review with agent/agency and client company.
- Work with and review of proposals from various insurance carriers.
- Work with and review of any communication support necessary to implement plan.
Tier Two: Implementation
- Subsequent advice and service of account following initial enrollment on an annual basis.
Tier Three: Turnkey
- Annual reviews of case and subsequent enrollment of newly eligible participants.
- Increases to initial offer on a guaranteed standard issue basis.
- Solicitation of newly eligible employees.
- Follow up on participants that leave the employer, but have options to maintain coverage on a personal basis.
- Periodic review of offer and re-solicitation as necessary.
- Taking the case to market to review pricing sufficiency.
Our Process
The four E's
Examine
Examine your client's unique business and cultural position by listening and asking the right questions.
Evaluate
Complete Review of your client's group non-health benefits and how they match up with your client's business culture and goals.
Educate
Educate you and your clients with the best options and key Executive Benefits, to understand how they most efficiently meet their client's specific needs and goals.
Empower
Empower clients to be able to make the best choices for themselves, and to see beyond "what's hot" right now.
This process helps us serve you and your needs in the best way possible.