Supplemental Disability Income Insurance. Most group long-term disability policies provide roughly 60 percent of an employee's income, up to a stated maximum. For most employees, two-thirds of their income won't exceed the employer's maximum benefit. But for highly compensated executives, the maximum benefit may amount to less than 50 percent of their take-home pay in the event of a disability. To address this problem, employers often purchase additional individual disability income policies on these executives to bring their total benefit, on a percentage basis, up to the same level of all other employees.
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