Value People. Improve Earnings. Protect Assets.
That's been our mission since I started
IZALE almost a decade ago and became our tagline along the way. It sums up the challenges that clients have asked us to solve for them.
For example, your people are the most valuable asset your institution has. Their knowledge, skills, relationships, and efforts are critical to your success, and how well you provide a total compensation and benefits package that meets their needs goes to the heart of attracting and retaining them.
The best total compensation packages provide market-based cash payments like base salary and bonus, as well as wealth accumulation tools like 401(k), profit sharing and deferred compensation. And they also include a variety of "risk management" benefits that help your people prepare and protect against risks that can stop salary and wealth accumulation goals in their tracks.
Let's focus today on just one of the risk management benefits you should offer - disability insurance. The risk of someone having a disability before age 65 is over 25% greater than of someone dying. After 30+ years in this business, I've helped clients with almost twice as many disability claims as death claims and have seen up close how a disability impacts people. Sure, accidents happen and someone may end up a paraplegic; frankly, that's the exception. Far more common are muscular or coronary or neurological conditions.
Group long-term disability or LTD is a strong foundational benefit that every employer should offer. (If you don't - please call us today. Adding this benefit is easy and costs less than you think.) The out-of-the-box group LTD plan usually covers 60% of base salary after 90 or 180 days of disability, up to a maximum benefit of $6,000. Simple math shows that this covers $100,000 of base salary. For most of your employees, group LTD is enough.
For your executives and even some officers, however, group LTD nearly always leaves a gaping hole in coverage. Salary above the maximum - not covered. Bonuses - not covered. Retirement plan contributions - not covered. When you take out what's not covered, we frequently see the protection fall to 40% or less of total compensation. And that's just not acceptable.
What can you do? First, we can help you redesign the group LTD and cover more compensation. With some clients, that's all we needed to do. If that's not enough, however, we can show you how employer-sponsored individual LTD coverage can ensure that your highest paid employees have the same coverage as your newest, entry-level hires.
Given the risk of disability, don't delay on fixing the shortfall in what you offer. Call us today.
Scott Richardson, Founder & CEO