Guaranteed Issue Disability Insurance

Disability Insurance aka Income Protection Insurance helps replace a portion of your income when you cannot work due to injury or illness.

Providing group long term disability insurance is a wonderful benefit both for the short- and long-term risks and often is adequate for entry-level employees. However, there is often a gap in coverage for highly compensated individuals when it comes to long term coverage. For example, if an employer offers a typical group Long Term Disability package of 60% income replacement up to a maximum of $10K per month, anyone making over $200K has reached the $10K max and no longer has 60% of their income protected. An executive making $400k would only have 30% of their income covered, and this gap increases with compensation.

This is where Guaranteed Issue Disability insurance would come in. It adds additional income protection just for the executives who have a coverage gap which means it is cheaper than increasing the group Long Term Disability. This results in individual coverage that the executive would own from the start but does not require the usual underwriting (Medical Exam & Medical Record Review) and is guaranteed to be issued without the possibility of the executive being declined or having exclusions for pre-existing conditions. There are options that require zero questions or signatures from the executive, and sometimes there are a limited number of questions to confirm they are not already eligible for a claim.