Excess disability planning is a must for highly compensated executives and owners who risk losing a substantial portion of their income to a disability, even if covered under a group plan. These plans, also known as supplemental income plans, are nondiscriminatory and can be designed to be paid for in full by a company or business, while delivering the benefits tax-free. They can also be used on a business or personal level.

While group protection provides a strong foundation of coverage at a cost-effective premium, they often leave out the very people who need to have disability coverage in place the most. Other problems with many group disability plans are that benefits are typically taxable, reducing benefits to 35 cents on the dollar, reverse discrimination for highly compensated employees who must face inordinately low benefit caps on income, and limitations on base salary coverage for those executives who depend on a variable pay structure.

Excess and surplus disability coverage, available through Lloyd's of London and other carriers, provides for the maximum amount of wage protection for highly compensated employees and owners, and can be used in conjunction with other coverage's.

Coverage of this type is also available for:

• physicians and surgeons
• entertainers
• professional pilots
• professional athletes
• athletic teams
• golfers, jockeys, other sports professionals, including racers

For additional information, email me at rick@viehdorfer.com

for a proposal, see our Individual Needs section.

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