Many executives do not realize that they are often discriminated against by group disability insurance policies.
The reason for this is that most group disability policies have maximums on the amount of disability insurance each employee can receive. It is not uncommon for group disability policies to max out at $5,000 a month, and even some of the better plans still have a cap between $12,000 and $15,000 a month. This can cause a significant shortfall to those many senior executives who earn $500,000 plus a year.
A $5,000 disability policy, or even a $15,000 a month disability policy, would only protect them against a portion of their income should they become disabled due to an injury or illness.
Individual disability policies offer much higher maximums. Many individual disability providers can give them monthly benefits of up to $25,000 or $30,000 a month.
A key executive can also top-up their existing group policy with an individual one to help protect against potential shortfalls should they become disabled. Individual disability policies can also be tailored to the insured’s needs. They can choose the elimination period and the benefit period that fits their situation.
They can also add riders, such as “Own Occupation” or return-of-premium riders, which return a % of the premiums paid if the insured remain healthy and does not make a disability claim.
For more information on disability insurance in Canada, please contact us at 1-866-899-4849, or visit our Disability Insurance Quotes Page.
