Milo Minutes: How One Bank Strengthened Executive Benefits with DI

We recently had the opportunity to work with a bank that has a strong local presence here in Chicago. The bank already did a great job offering group LTD and other employee benefits, but they wanted to make sure their executives were fully protected.

When we were brought in to assist with the case, we started by running a census of 50 employees. Thirty were making around $250,000 a year, and the other twenty were making over $350,000.

Here’s what we found:

• The bank’s group LTD plan was competitive in the marketplace: 60% of income covered with a $10,000/month cap.
• For someone making $250k, that cap meant they’d only take home about 35% of their income after taxes if disabled.
• For those earning $350k, the gap was even larger.

Most people are shocked when they realize this. It doesn’t matter how much someone earns - if they’re used to a certain lifestyle, they’ll want to protect it. For example, an executive may belong to a country club, and even if they’re unable to work, they’d want to maintain that membership and community.

So, we ran two supplemental DI quotes:

• One for executives earning $250k (who qualified for a certain level of additional benefits).
• Another for those earning $350k (who qualified for even more).

But here’s the catch: Most of the senior leadership team was over age 40. That means traditional medical underwriting could have resulted in declines, ratings, or exclusions. Not ideal.

Instead, we implemented an Executive Carve-Out Disability program

• No individual underwriting required.
• A 40% discount 
• Unisex pricing 
• Each policy was the same Guardian ‘Cadillac’ DI contract you’d normally get through traditional underwriting, with all the bells and whistles - and fully portable.

The bank moved forward because they understood that protecting their top people’s income is more than just insurance. It’s about retaining talent, providing better benefits, and giving executives the dignity to return to work without needing to liquidate assets just to maintain their lifestyle during a potential claim.

If you’re working in this space and want to see how these solutions might fit your clients, let’s connect. And if you know businesses with a defined management team but aren’t sure how to approach them, reach out - I’d be happy to map out a strategy with you.

Tracking Number 8340375.1  

Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. True Wealth Strategies LLC is not an affiliate or subsidiary of Guardian. CA Insurance License # 4205864.