Frequently Asked Questions for Advisors

What is Multi-life High-limit Long-term Disability (High-limit LTD) Insurance?

High-limit LTD is a guaranteed issue disability income protection solution for high earners whose incomes exceed benefit limitations of underlying programs including Group LTD and IDI (for example, Executives, C-suite, and Partners). The goal of a High-limit LTD program is to close the income protection gap of a company’s/firm’s highly compensated population eliminating financial exposure in the event of a disability.

Why should my group clients consider High-limit LTD?

Although Group LTD and IDI programs may solve the income protection needs of a firm’s general population, they do have benefit caps and limitations that leave their high earners with substantial amounts of unprotected income. A High-limit LTD program will provide additional benefits to specifically address those who have income protection needs beyond the underlying plans.

What should I look for in a High-limit LTD solution for my clients?

Benefit Duration: The Westport Group is the only firm in the marketplace that can write benefits to retirement age. Other providers are limited to either 5 or 10-year benefit periods which is a detriment to younger partners and executives. The average age of TWG’s insureds is 48.

Definitional Consistency: TWG incorporates the GLTD contract definitions into our policy providing a seamless integration of programs. Inconsistent or restrictive definitions may lead to conflict during the claims process.

Complete Income Protection: TWG will protect not only cash compensation (K-1, Base Salary, Bonus) but can also offer solutions to protect equity compensation.

International Presence: The Westport Group can extend coverage to international partners and executives and are able to illustrate benefits and premiums in multiple currencies.

Enrollment Support: Implementation requires minimal resources from the client. TWG will custom build the implementation and enrollment plan based on the needs of the client and the High-limit LTD program. This includes our industry-leading online enrollment system.

How does High-limit LTD impact a company’s existing LTD and IDI programs?

High-limit LTD will not disrupt underlying programs as it “stacks on top” of the in-force coverage.

How much additional coverage can be offered in a High-limit program?

TWG’s book includes programs offering more than $150,000 of monthly benefit in addition to the underlying GLTD and IDI plans. The overall income replacement goal for any disability income program is generally 60%.

How does High-limit LTD differ from a supplemental IDI plan?

High-limit LTD provides much higher monthly benefits with a more seamless integration of underlying definitions. High-limit LTD can also be written internationally whereas IDI cannot. Many of our US-based clients have an international presence and High-limit LTD ensures protection for all eligible regardless of citizenship and location.

How does Lloyd’s of London play a role?

TWG is a Lloyd’s of London Coverholder, meaning that Lloyd’s provides the financial backing for the policies and TWG has the authority to write the policies on behalf of Underwriters in London.* TWG is also the policy manufacturer and distributor. This means that the key features of TWG’s High-limit LTD solution cannot be replicated by any other provider in the marketplace.

How Many Eligible Lives are needed for program consideration?

Minimum of 10 lives.

How can TWG support me throughout the sales process?

TWG will help you prospect, develop proposals, and present plan designs. Our results show that the more involved TWG is in the process (client presentations) the higher the closing rate.

How easy is it to implement a program?

Once a case is sold, TWG’s implementation team will take the lead and work with the client to develop an enrollment plan that meets their needs. Depending upon the plan design, implementation, on average will take 4-8 weeks.

What does the enrollment process look like?

It depends on the plan design. Programs that have no optionality can enroll quickly and easily via the census. Plans with voluntary levels of benefit will generally utilize TWG’s proprietary online enrollment system. TWG boasts an overall 93% participation rate across our book of business.

What’s the average premium on a case?

Average annual premium at a case level is $1.35M.

What’s TWG’s largest case?

Our largest case is 1,000+ lives.

What is TWG’s average participation rate?

Our overall participation rate is 93%.

What’s my next step?

Reach out for a 30-minute call. TWG can provide an overview of our program and illustrate how High-limit LTD is an impactful tool that you can use to build your business.

*TWG products are underwritten by certain underwriters at Lloyd’s.