If it’s not broken, don’t fix it!??

Many Employers offer a Supplemental Disability (LTD/IDI) plan for their Executives and highly compensated employees. Once implemented, these plans often become stagnant, outdated, and over-priced. 

Yes, it’s likely that the Plan Administrator is adding new Executives, terminating old, and exercising the annual benefit coverage increases due to salary increases. It’s not likely, however, that the plan will receive a thorough annual check-up unless the plan is designed and administered by a consultant specializing in Executive Benefit plans.  An Executive Benefit Specialist focuses on these benefits plans, isn’t hostage to the time and energy required by Health Insurance and has a deep understanding of Supplemental Disability programs.

An annual check-up performed by an Executive Benefit Specialist can help ensure the plan still meets the Employer’s financial wellness goals, offers the best pricing, appropriate plan maximum, aligns with the Group LTD plan, includes the best underwriting and Guarantee Issue maximums, and leverages the simplest administrative processes.

You’ve heard the old saying, “If it’s not broken, don’t fix it”.  But by avoiding a thorough annual check-up or plan audit, the Supplemental LTD plan will in fact become broken.

Here are three examples:

1.      Pricing: 

a.       The cost of Supplemental Disability plans has decreased significantly over the years.  By doing nothing, over the course of just a few years, the Employer is overpaying for the plan – often 20-40% too much.  An overhaul of an older plan – one even 5 years old – can deliver significant savings to an employer, despite an aging Executive group.

2.     Administration:

a.       Supplemental Disability plans normally require simplified underwriting with a short enrollment form.  Plans today can be administered without requiring an enrollment form, if the plan is designed with underwriting correctly.  Update to a new simplified onboarding process to save Human Resources time - and improve the onboarding experience for Executives.

3.     Guarantee Issue Benefit Maximum: 

a.       A Supplemental Plan installed 5-10 years ago, may no longer adequately protect the Executives’ earnings.  With increased earnings over the years, an Executive will eventually “hit” the Supplemental Plan benefit maximum.  This means the Executive(s) will receive less than the target income replacement level.  Increasing the plan maximum may be necessary.

By partnering with an Executive Disability Benefit Specialist, Employers can save premium, improve the onboarding process, save time, and update the Supplemental Disability Insurance plan to better align with the Employer’s goals.

Navis Benefits Group, LLC, specializes in Supplemental Long-Term Disability Insurance plans. Ask how Navis Benefits Group can help design, market, install, and administer a tailored Supplemental LTD plan.