September 14, 2016 kvw

GSI – Disability Income Insurance

 

Everything rests on an individual’s ability to earn an income.

For you as well as your employees, it is important to protect your ability to earn a living. If you suddenly lost this ability, how would it change your life? How would you pay your bills?

Statistics show that many American workers are not financially prepared for an unforeseen disability. 68% of adult Americans do not have savings earmarked for emergencies*, and 65% of working Americans say they could not cover normal living expenses for a year if their employment was lost.**

Choosing Guaranteed Standard Issue Disability Income Insurance allows you to participate in a streamlined underwriting program designed to provide quality disability insurance to an eligible group of employees on a simplified basis.

Each eligible employee must answer the following gatekeeper question(s) that address the following areas:

  • During the past 6 months, have you missed work, altered your work schedule or location, or worked less than a full time schedule due to sickness or injury?
  • Have you ever had a total loss of speech, or hearing in both ears, or sight in both eyes, or the use of both hands, both feet, or one hand an one foot?
  • Do you need human or mechanical assistance for activities of daily living?
  • Have you ever received treatment for mental incapacity?

The GSI plan can supplement Group Long Term Disability or stand alone.  The plan design is at the group level, so it can vary by well defined eligible classes.

Core Buy-Up plans are available.  The employer purchases a small base benefit on all eligible employees (often as low as a $500 monthly benefit).  Employees may then purchase additional amounts.  The GSI offer is established for the combined benefit.  For example, if the GSI offer is $2,500 per month, and the employer buys a $500 benefit for all eligible employees, each employee may  buy up the additional $2,000 on a GSI basis, within the Issue and Participation Limits.  Higher amounts above the GSI offer may be purchased with full underwriting.
 

Employer Advantages


  • - This important perk for employees can attract/retain talent, increase employee job satisfaction and productivity
  • - There is great flexibility. It can be paid by the company, employee, or both (cost-share)
  • - Deductible business expense for employer-paid premiums (applies to non-owner premiums)
  • - Fixed expense - noncancelable policy option guarantees level premium to age 65
  • - Voluntary plan - additional benefit offered with no additional cost to the employer

Employee Advantages


  • - GSI underwriting means:
    • - No exams or labs
    • - Short-form application
    • - The gatekeeper questions: actively at work
    • - Applicants who satisfactorily answer gatekeeper questions will be issued a standard policy
    • - Streamlined financial underwriting - census from employer for GSI amount and up to $5,000 of monthly benefit above GSI level
  • - Better disability income insurance policy compared to group LTD
    • - Stronger contract provisions
    • - No offsets
    • - Individually owned
    • - Fully portable
  • - Higher income protection with GSI
    • - LTD maximum benefit for highly compensated often not enough - reverse discrimination
    • - GSI covers total comp vs. base salary only (most LTD plans)
    • - Most LTD plans employer paid - benefits are taxable
  • - Discounted premiums that are portable (except in OH)

*U.S. Federal Reserve Board, Survey of Consumer Finances, 2010
**Council for Disability Awareness, Disability Divide Consumer Disability Awareness study, 2010




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