Bank Directors Seminar, Coeur d'Alene, ID

Individual Disability Insurance (IDI) Benefits

Income Protection Gaps

After-Tax LTD Income Replacement

0% 10% 20% 30% 40% 50% 60% 70%

Challenge: Generally, Group LTD leaves high earners with lower disability income replacement than most other employees. This is due to low plan maximums, lack of bonus protection, and high tax rates.

60% Group

50% Group

29% Group

Employee 1 Employee 2 Employee 3

Base Salary

$50,000

$90,000 $10,000 $100,000

$250,000 $100,000 $350,000

Bonus

$0

Total Compensation

$50,000

1 Assumes employerpaidGroup LTDbenefit of 60% ofBase Salaryup to $10,000 per month. 2 Based onestimated federal, state and local taxes applied to employerpaidportion.

$30,000 $30,000

$54,000 $50,000

$120,000 $100,000

Pre-Tax Annual Group LTD Benefit 1 After-Tax Annual Group LTD Benefit 2 After-Tax LTD Income Replacement

60%

50%

29%

©2018Equias Alliance, an NFP Company

Individual Disability Insurance (IDI) Benefits - Restoration 80%

Income Protection Gaps Solution:

After-Tax LTD Income Replacement

Individual

Individual

60%

10% 31%

60%

Individual disability benefits increase overall plan maximums, protect bonus, and allow for tax-free benefits – all of which enable higher paid employees to raise their income replacement to necessary levels.

40%

Group

Group 50%

Group 29%

20%

0%

Employee 1

Employee 2

Employee 3

Base Salary

$50,000

$90,000 $10,000 $100,000

$250,000 $100,000 $350,000 $120,000 $100,000

$0

Bonus

Total Compensation

$50,000

Pre-Tax Annual Group LTD Benefit After-Tax Annual Group LTD Benefit After-Tax LTD Income Replacement After-Tax Annual Individual LTD Benefit

$30,000 $30,000

$54,000 $50,000

60%

50%

29%

$0

$10,000

$110,000

After-Tax Annual LTD Income Replacement

60%

60%

60%

©2018Equias Alliance, an NFP Company