Long Term Disability Benefit Coordination

While the Todd Organization does administer some Group Long Term Disability Plans for our clients, our focus is on Supplemental Individual Disability Insurance Plans (IDI).  These plans can uniquely enhance the plan provided by your long term disability broker.

Why Individual Disability Insurance?

When examining the positive impact that an IDI plan can have on a company’s Long Term Disability benefit platform, it is critical that any IDI plan closely coordinate with the existing Group Long Term Disability plan.

Coordination ensures that the plan design of the Group LTD and IDI Plans mirror each other in terms of definition of disability, own OCC provisions, waiting period, benefit period and riders. Also, coordinating the two plans further ensures that the IDI Plan properly covers any gaps in the Group LTD Plan, such as increased replacement percentages, higher monthly benefit caps, and covering other forms of compensation (bonus, commission and other comp).

When Individual Disability Insurance is incorporated into an existing Group LTD Plan, it is often implemented with a GSI (Guaranteed Standard Issue) enrollment process. GSI coverage is:

• Discounted (often 20-35%).
• Offered with unisex rates.
• Portable (your employees may take the coverage with them if they ever leave the company).
• Available under much reduced underwriting guidelines (short application, census as income verification and few medical questions).

GSI is not a good fit for every company. Please contact The Todd Organization to inquire whether your company would be a good candidate for Guaranteed Standard Issue.