3 Reasons to Offer GSI Disability Income Insurance to Your Key Employees

In today’s competitive marketplace, offering high-value employee benefits can help ensure you both attract and retain top talent. Fortunately, one of the most valuable benefits for key employees can be one of the easiest for employers to incorporate into their benefits package. Supplemental disability income insurance offered on a Guaranteed Standard Issue (GSI) basis can help protect top employees’ income.

Why is income protection currently a top concern among employees? According to the Council for Disability Income Awareness:

• At least 51 million working adults in the U.S. are without disability insurance other than the basic coverage available through Social Security.
• Only 40% of U.S. households have enough liquid savings to cover at least three months of their recurring expenses—and only 28% can cover at least six months.
• One in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age.

Missing work due to a disability can have long-term impact on an employee’s ability to save for retirement, too. A recent study by the Employee Benefit Research Institute indicates that more than 74% of disability-affected retirees felt they retired earlier than they’d originally intended, making them more likely to start off retirement with fewer assets and subsequently lower median and average values of household financial assets vs. non-disability-affected retirees.

With an Ameritas GSI plan, you can help ensure your employees are protected. Here are three reasons these policies stand out.

1. A streamlined approval process without medical underwriting

GSI offers a streamlined process that doesn’t require detailed financial documentation or medical underwriting. This means employees can obtain insurance without undergoing a medical exam or lab

testing. We will accept a census from the employer to justify employee incomes. As long as employees meet certain conditions, such as being actively at work and employed by a company offering this benefit, they are offered coverage on a guaranteed standard issue basis.

2. Comprehensive income protection

According to Rick Mileham, regional vice president, DI sales and distribution at Ameritas, many employees don’t realize that their primary DI insurance may not be enough to ensure their family’s standard of living during a period of disability. “Many group long-term disability plans typically replace only 60% of an employee’s base salary, are often capped at a lower monthly benefit amount, and are taxed as regular income,” he explains. “For highly compensated employees, this amount may not cover their income protection needs, resulting in a coverage gap.”

GSI DI insurance from Ameritas offers several key advantages:

• Flexibility: Different levels of coverage can be offered to different classes of employees, matching the company’s benefits planning system.
• Premium discounts: Employees can obtain robust income protection at a lower rate than if they purchased it individually.
• Payment and billing options: Employers can choose to cover all, some or none of the cost, with convenient billing options for both employer-paid and employee-paid premiums.

3. High coverage limits

GSI policies often come with higher supplemental coverage limits. These guaranteed standard issue amounts may be an additional $10,000 or $15,000 per month on top of group benefits, which can be a significant incentive for businesses looking to attract and retain top talent. This is especially important for non-owner employees who may not receive tax-free benefits at the time of claim, unlike owners who often have more favorable benefit structures.

Expert customer service from a company in the business of fulfilling life

Offering a GSI program as part of your employee benefits package helps provide income protection, especially for highly compensated employees. With flexible plan levels, no full medical underwriting and attractive benefit amounts, GSI policies are a valuable addition to any company’s benefits offerings.

Best of all—you don’t have to navigate this process alone. In choosing Ameritas as your provider, you will gain access to financial professionals who are experts in DI insurance, as well as a support team with deep experience in working with employers of all sizes, across many different industries. Learn more about offering GSI DI insurance from Ameritas, or find a financial professional to get started.

Disability Income Insurance policies are issued by Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York.