LTD is a great start but is not intended to cover all compensation. Even if you have a generous LTD plan, it will typically cover 60% of base salary only…and taxable to the employee. Employees are all paid differently, both in terms of amount and pay structure. As a result, actual income protection varies widely by each employee within your population.

Optional income protection is much like optional group life insurance – they both protect against the loss of the wage earner’s ability to provide income and add valuable choice to your benefit package. A personal income protection plan provides additional choice and security for your employees.

Salaried employees earning in excess of $75,000 total compensation is a common starting point. Employees earning below that level often have less discretionary income for supplemental insurance, and would also have a higher “net” LTD replacement under the employer plan, due to being in a lower tax bracket.

Almost half of underwritten disability applications are declined or issued substandard – with exclusions and or surcharges.  Employees can obtain this valuable coverage, and the following advantages, only through your sponsorship:

• No health questions or exams
• No financial statements necessary
• Deep discounts – ranging from 25%-40% – year after year
• Higher limits which allow employees to cover total compensation
• Fully portable protection – they own their policy

Very limited involvement, both for you and your staff – NPC provides all the planning and communication correspondence, from pre-enrollment through ongoing plan administration, as well as dedicated email and call center for any questions. We also stay engaged for customized ongoing service and support.

We can prepare a custom exhibit for your review with limited and non-personal data. This overview will illustrate how many employees are below the targeted level of income replacement and how much income they could protect with an optional disability income protection plan.

For Human Resources:

• More equity for all employees; LTD plans are effective but inherently provide a different level of total income replacement because employees are paid differently
• Added, valuable choice to your benefit package for many employees, at no company cost
• Outsourced, customized implementation process provided by NPC
• A new, portable benefit enhancement that is highly appreciated and recognized, especially by management associates and executives

For Employees:

• Ability to insure a much higher percentage of all compensation, ensuring they can maintain lifestyles for themselves and family members
• Deeply discounted rates and no health questions or exams – many employees could not even qualify for this coverage through financial planners, given stringent underwriting requirements
• Valuable understanding of what they already have provided to them at no cost and the ability to customize their protection; each employee will have multiple cost/benefit options to meet unique, individual needs
• Personal, portable policy – financial protection that employees can own

Additional revenue with custom delivery and no burden on your staff – we do the work from pre-sale consultation through ongoing customer service. Our experience in these plans and how to appeal to your clients offers a much higher likelihood of engaging decision-makers to move forward with a plan. The information we prepare on your behalf helps your client appreciate both the need and value of additional income protection, with emphasis on a customized communication plan that will be well received.

Salaried employees earning in excess of $75,000 total compensation is a common starting point. Employees earning below that level often have less discretionary income for supplemental insurance, and would also have a higher “net” LTD replacement under the employer plan, due to being in a lower tax bracket.

Let’s talk about it – we are happy to provide some preliminary consultation and go from there. If we agree to work together on a project and you’re pleased with the results, we can discuss additional opportunities.

Protecting your clients – In two ways:  1) there is a significant need for executive/optional disability plans in most companies and associations, and 2) protecting your clients from competitors looking for an entry point. You can and should be the adviser to bring up personalized income protection plans to your clients.  NPC can help as a niche partner firm.

Additional, recurring income – While these plans are often voluntary and involve no cost to employers and associations, the ongoing revenue opportunity can be significant.

Employer LTD benefits are an important start. However, they are typically taxable and protect only a fraction of your base salary – not including any variable, incentive or performance bonus pay. As a result, most wage earners are unaware exactly what they have and it is often well below what would be needed to maintain lifestyle.

As a general rule, these plans may protect up to 60% of your base pay only. The plans we offer can replace up to 90% of your “net” income. The aggregate maximum will vary based on your individual compensation and underlying LTD amount. We also offer specialty lump sum plans which can provide up to $2,000,000 in a single payment in the event of a disability which would end your career in your particular occupation.

Yes – whether you are an employee or association member, you own your coverage if you ever leave that organization for any reason.

Most personal income protection plans we offer will continue to cover you – even if you are no longer earning an income – as long as you continue paying your policy premiums. If you are unable to care for your children for a time due to a disabling illness, for example, you can use these funds to help provide outside childcare or any other needs.

Yes. These plans are designed to cover your total earned income, largely filling the gap between your employer’s coverage and your actual take-home pay, so that your monthly income will still cover all your expenses and future plans no matter what the future may hold.