Bank Directors Seminar, Coeur d'Alene, ID

Individual Disability Insurance (IDI) Benefits – Maximum 80% Individual

Income Protection Gap

After-Tax LTD Income Replacement

Individual

Solution: 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.

20% 41%

60%

60% Group

40%

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

$20,000

$142,500

After-Tax Annual LTD Income Replacement

60%

70%

70%

©2018Equias Alliance, an NFP Company

Combined Offering Advantages Benefits to the employee: • Provides maximum income replacement ratios up to 75% of total compensation • IDI rates are permanent to age 67 • IDI can be offered as guaranteed standard issue, meaning no medical exams • Contracts and discounted rates are portable if the employee leaves • Plan can be designed to cover all forms of compensation including Equity • Plan can include an additional Catastrophic Benefit Benefits to the employer: • Competitive bidding is high with group LTD carriers when the maximum benefit is not increased • LTD rate volatility is reduced with spread of risk to a combination of group LTD and IDI

©2018Equias Alliance, an NFP Company