Executive
Insurance Strategies
Let’s talk about financial security.
- Are your top executives on track for retirement?
- Are your executives prepared for the possibility of premature death or disability?
At The Todd Organization, we customize and develop plans that help your executives accumulate assets for retirement while protecting them, and their families, in the event of a catastrophic event. Our advisors align coverage to provide benefits in the event of premature death, disability, or for long-term care needs—while maximizing tax advantages—without tapping retirement savings.
We help companies protect both their executives and corporate assets by:
- Evaluating gaps in coverage
- Identifying significant risks to underlying group plans
- Balancing group and individual insurance solutions to protect executives, while stabilizing the underlying group insurance plans
Which plans are right for your executives? Todd is here to help.
The professionals at The Todd Organization work to understand your current position, as well as your goals and objectives and then create personalized, custom-fit plans that provide the greatest benefit, with smart tax advantages.
Life Insurance
High-end talent requires above-average benefit offerings. The added protection of Executive Death Benefit Plans checks that box. In these exclusive plans, the employer makes a legally binding promise to the employee that if he or she should die while employed with the company, or following retirement with the company, it would pay his or her beneficiary a defined death benefit amount.
How Life Insurance PLANS FUNCTION:
- A life insurance policy equal to the amount of the promised benefit is purchased by the Company on the life of the employee.
- The Company is both the owner and beneficiary of the policy.
- Upon the death of the employee, the Company receives the death proceeds, generally income tax-free, which it could use to pay the promised benefits to the beneficiary; or these funds may be used to purchase a tax-free investment (such as a municipal bond) in which the annual income could be used to pay the benefits.
- The growth in the life insurance policy and subsequent death proceeds paid to the Company generally help to recover the overall cost of the plan to the Company.
One in Four of today’s 20 year olds will become disabled before Age 67
— Source: Social Security Administration
Let Todd Create a personalized plan that best fits your business.
Disability Income
At many companies, group long-term disability insurance is simply insufficient for executives. A typical approach is to provide a taxable benefit based on 60% of one’s salary, up to a maximum monthly benefit of $10,000.
Supplemental Executive Disability Plans minimize the impact of a long-term disability on the company’s employee population, while also providing added benefits for the executive, such as replacing more than 60% of lost salary, as well as commissions, bonuses, etc.
LONG-TERM DISABILITY PAYMENTS DON’T REPLACE YOUR SALARY; THEY PROVIDE A BUFFER—USUALLY 60% OF YOUR SALARY.
Why Choose Disability Income Insurance?
An executive’s bonuses, commissions, stock and other incentive compensation are not part of the group disability coverage equation. Supplemental disability plans bridge the gap in the event of a disability or long-term illness, providing ample coverage – and peace of mind.
BENEFITS FOR COMPANIES
- Flexible: These policies can be funded by the company, the executive or both
- Inexpensive to offer and administer
- Attractive option for incenting key executives
BENEFITS FOR EXECUTIVES
- Reaches behind basic group coverage to replace lost salary, commissions, bonuses
- Policy is portable—coverage will remain in force as long as premiums are paid
- If policy is paid by executive, benefits are received tax free (under current tax law)
LONG-TERM CARE
Offering an Executive Long-Term Care Insurance Plan helps companies recruit and retain talented workers. Employer-sponsored programs have created an important awareness of the need to protect hard-earned savings against ever-increasing long-term care expenses.
The Todd Organization helps companies incent top-tier executives, offering long-term care benefits tailor-made for their employees, at a relatively low cost.
Consider these statistics
The average national cost for nursing or facility care:
The average costs for various long-term care options:
Source: Cost of Care Survey, Genworth, 2014
Why Choose A Long-Term Care Plan?
Executive Long-Term Care plans cover a wide variety of services and supports which can be provided in the home, community or in other living arrangements. These services help with chronic illness, disabilities or other conditions because of an accident, sickness or cognitive impairment.
BENEFITS FOR COMPANIES
- Inexpensive benefit offering
- Employer-paid premiums are tax deductible (with some limitations depending on the type of business entity)
- Flexible plan implementation:
- Executives Carve-Out Plans for key employees
- Employer Paid Base Plans for management or all employees
- Voluntary Plans for all employees
- Opportunity to offer coverage to spouses and family members