Executive Carve-Out
Provide Disability Income coverage for a select group of employees only. The business may choose tax-deductible premiums or benefits. When the company deducts the premiums, they are not shown as income to the insured and the benefits are taxable to the employee. The plan needs to be documented and communicated to the employees to qualify for the deduction. Flexibility in plan design and freedom to choose who may participate make this a very popular approach to satisfying income protection needs. The benefits may be layered on top of an employer-paid LTD plan.
