Group LTD: Executives get short end of stick

“Not only are many executives at risk, but so are their families,” said Melissa Millan, senior vice president, worksite insurance, MassMutual. “We commissioned this study to help employee benefits executives and benefits managers benchmark their disability insurance plans more effectively, and help lead organizations to fully informed recommendations and decisions.” 

Among other discoveries, the study found that:

• Typically, base group LTD plans (78 percent) do not cover variable compensation, such as bonuses and commissions, which is a compensation structure more commonly offered to high-ranking and C-suite executives; and only 21 percent of organizations indicated that they offer “buy-up” coverage.

• Almost one-third of companies (29 percent) expressed concern that high earners with income in excess of the plan limit are not adequately covered.

• Only 19 percent of survey respondents indicated that they offer supplemental individual disability income insurance coverage. 

“This study provides valuable insights and perspectives that may have not been available to employee benefits executives and benefits managers before,” said Millan. “Clearly, considering and addressing the shortfalls is the place to start.”