Why is the Comprehensive Disability Protection Concept Needed?
Because many Group LTD programs provide inadequate benefits:
- Many do not insure incentive compensation
- Many insure very low levels of total compensation
- Many provide taxable benefits
- Few, if any, insure contributions to 401(k) and profit sharing plans
- None insure accruals and contributions to non-qualified deferred compensation plans
The result: the potential for a catastrophic loss of income and retirement assets for disabled employees.
LTD Benefit is 60% of first $250,000 of salary |
|||
Base Salary |
$100,000
|
$ 200,000
|
$ 400,000
|
Bonus |
0
|
$ 40,000
|
$ 150,000
|
|
After Tax
Spendable Income |
$80,000
|
$180,000
|
$375,000
|
After Tax
LTD Benefit |
$48,000
|
$90,000
|
$112,000
|
Income Loss |
$32,000
|
$90,000
|
$263,000
|
Loss of Spendable Income
|
40%
|
50%
|
70%
|
