Company executives are beginning to see how standard-issue long-term disability may not fully meet their needs should they become disabled. It's a "stark realization that their current long-term disability coverage is good for the rank and file but discriminates against higher income earners," says Steve Brady, 2nd VP of individual disability insurance sales and marketing at The Standard in Portland, Ore.

Executives, Brady explains, tend to forget that the typical LTD plan has a cap that could be up to $10,000 a month, and instead think they will receive up to 60% of their full income if they are disabled. "That cap limits them, and a usual long-term disability plan does not cover incentive pay, bonus income," he points out.

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