LTD is a great start but is not intended to cover all compensation. Even if you have a generous LTD plan, it will typically cover 60% of base salary only…and taxable to the employee. Employees are all paid differently, both in terms of amount and pay structure. As a result, actual income protection varies widely by each employee within your population.
Optional income protection is much like optional group life insurance – they both protect against the loss of the wage earner’s ability to provide income and add valuable choice to your benefit package. A personal income protection plan provides additional choice and security for your employees.