Many advisors call these programs supplemental disability income coverage, when in fact the majority of the income paid to an executive during a disability may come from the executive protection plan.
(PRWEB) December 23, 2014
By 2022, the Bureau of Labor Statistics estimates there will be 2,564,700 “Top Executives” in the corporate marketplace. These high-income earners have a current median income of over $100,000 and include upper and middle management and executives, travel frequently, deal with a multitude of pressures and have demanding schedules. Top Executives often work long hours, including evenings and weekends. In 2012, about half worked more than 40 hours per week. The nature of their jobs naturally leaves them more susceptible to stress-related illnesses that can lead to long-term disability. Their unique skills make them more specialized and harder to replace, leaving both the Top Executive and their firms exposed to the economic risks of disability.
Secura Consultants has developed specialized program designs and presentations to assist the financial service professional in designing and placing insured coverages for this important segment of the market.
According to Secura Consultants’ CEO, George Davidson, “Many advisors call these programs supplemental disability income coverage, when in fact the majority of the income paid to an executive during a disability may come from the executive protection plan.” Davidson states that “These plans are developed to provide a more complete income protection solution and should be referred to as foundational plans instead of supplemental.”
One of the challenges advisors face when discussing these programs is the lack of knowledge executives and human resource professionals have regarding their income protection plans. Generally this lack of understanding extends to all employees of a company.
A 2012 study by the Consumer Federation of American found that most employees recognize they do not understand group disability insurance. Only 13 percent said they know "a lot" about this insurance, while more than one-third (35%) said they know only "a little," and more than half (52%) said they know "not very much" or "nothing at all."
The programs and presentations Secura Consultants has developed speak to this knowledge gap by providing comprehensive explanations of the employer’s group disability program and illustrates potential inadequacies of these plans. The analysis is customized for each employer and may discover important issues such as inadequate definitions of disability, provisions leaving important aspects of income uncovered or limitations imposed by certain types of disabilities which may not be covered or covered with restrictions.
The advisor also receives easy to understand product comparatives illustrating the benefits of multiple providers to assure the recommended enhancements offer adequate coverage to the company’s key employees.
Secura Consultants provides income protection design and implementation services for elite financial professionals across the United States. For more information, contact Nicole Blodgett, Senior Brokerage Consultant, at nicole(at)securaconsultants(dot)com or call at (952) 641-5219.