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Disability Income

Employer-Sponsored Multi-Life Plans

Quite often, a group LTD program will cover a higher percentage of income for entry-level associates than it does for key or highly compensated employees. An Employer-Sponsored Multi-Life Plan can make all the difference for your client and his associates.

Employer-Sponsored Multi-Life Plans (ESMPs) are plans of individual disability insurance, usually written as supplement to group LTD plans. They allow employers to structure attractive disability income programs for key associates at discounted premium rates. An ESMP provides tremendous flexibility in that your client can choose to pay for the entire cost for select employees, share the cost with employees or even make the plan entirely voluntary, meaning the plans can be offered at no cost to the employer. ESMP can be fully underwritten or Guaranteed Standard Issue depending on amount of coverage and group size.

ESMPs are a win for both employer and employee. The employer wins by providing a selective benefit for key associates at potentially no cost to him. In an employer-paid program, they can stabilize the overall cost of providing income protection benefits due to the level-premium structure of individual disability income contracts.

The employees win by obtaining a more appropriate level of disability income coverage based on income and current group LTD plan. In a voluntary ESMP, your key employees can purchase coverage at a discounted cost with potential underwriting concessions.

We at New York Long Term Care Brokers can help you review your clients LTD program and show you how a supplemental plan for key executives can provide the best employees with the best benefits available.