Implementing a comprehensive risk management strategy is imperative for C-level executives and senior management at HANYS member hospitals. One critical, but often overlooked component, is executive disability income protection.
For high-income earners, a disability doesn’t just threaten health. It threatens long-term financial stability, leadership continuity and retention. That’s where an executive disability income protection program (EDIPP) plays a pivotal role.
With increasing interest from C-suite and hospital executives, TruePlan Benefit and Retirement Advisors spoke with Bernard A. Gleeson, director, employee benefit services, to answer the most common — and most important — questions executives ask about EDIPPs.
Click on a common executive disability FAQ to get it's answer.
An executive disability income protection program (EDIPP) is a specialized form of disability insurance designed to supplement existing group disability plans offered by employers.
These individual plans provide additional coverage beyond the typical monthly maximum benefit cap found in traditional employer-based offerings. By overlaying on top of group plans, they ensure that high-earning executives receive adequate income protection if they become disabled.
Most group LTD plans replace up to 60% of income but typically cap benefits at $10,000 to $15,000 per month. For executives earning $180,000+ annually, this creates a meaningful gap, leaving high-income earners underinsured. In addition, EDIPPs provide more specific definitions of disability and occupation tailored to the individual's role.
EDIPPs differ in three ways:
Imagine a CEO whose role requires physical mobility across hospital departments. After a permanent leg injury, they can no longer perform those duties, but they could still earn income as a virtual academic instructor.
This distinction is critical for C-suite leaders whose responsibilities are not easily transferable.
Executives earning more than $180,000 annually often discover too late that their group LTD plan replaces far less income than expected, especially after taxes. EDIPPs help:
For hospital leaders, this protection supports not just personal finances but organizational stability.
Here are three benefits of EDIPP: Enhance executive financial security; more precise occupational definitions; and easy administration.
These programs provide a higher level of disability protection, ensuring that more of an executive's annual earnings are covered. Coverage is typically determined as a percentage (60% to 66%) of the applicant's annual earnings, with some excess line carriers offering limits of up to $100,000 per month. This coverage can be customized based on the executive's specific needs, subject to underwriting that evaluates health metrics, occupation, etc. Coverage can be customized based on:
Eligibility generally applies to executives whose earnings exceed group LTD plan maximums. Enrollment includes:
TruePlan helps navigate this process efficiently.
Hospitals that offer executive disability income protection demonstrate a commitment to leadership stability and long-term retention.
These programs:
Top talent increasingly expects this level of financial protection.
When evaluating an executive disability income protection program, hospital leaders should focus on several critical factors that directly impact the adequacy, reliability and long-term value of their coverage.
The policy’s monthly benefit should accurately reflect the executive’s total annual earnings, not just base salary. Because most group long-term disability plans cap monthly benefits, high-income earners often experience a significant income gap. An effective EDIPP is designed to supplement group coverage, so executives are not left underinsured if a disability occurs.
Many insurers structure executive disability policies to “layer” on top of employer-sponsored plans. This coordination is essential for ensuring seamless income replacement and avoiding coverage shortfalls created by group plan maximums, bonus exclusions or tax treatment differences.
Executives should review how long benefits last and when they begin. Some policies offer tax-advantaged benefits, while others require a defined elimination period or medical leave before payments start. Evaluating these timelines alongside premium costs is critical, as pricing can vary significantly based on underwriting, benefit duration and occupation class.
One of the most important differentiators in an EDIPP is how “total disability” is defined. High-quality policies use strong own-occupation language, allowing executives to receive benefits even if they return to work in a modified or alternative role. This distinction can materially impact claim outcomes for senior leaders with specialized responsibilities.
Individual executive disability income policies often provide the level of specificity high-level executives need. Optional riders, such as cost-of-living adjustments, future increase options or coverage for incentive compensation, can further align benefits with evolving compensation structures and career trajectories.
Unlike the 24-month period on group plans, executive disability income protection plans cover gaps regarding mental health and substance abuse to age 67.
By carefully evaluating these considerations, executives can select a disability income protection program that supports both their personal financial security and the broader risk management objectives of their organization.
One common misconception is that executive disability coverage is complex or slow to implement. In reality, the process is straightforward and designed to minimize disruption. Here are the four common steps that executives can take at their own pace.
TruePlan Benefit and Retirement Advisors brings deep experience designing executive disability income protection strategies for healthcare organizations. We work with leading domestic and excess-line carriers to build solutions that integrate seamlessly with existing benefits, align with institutional risk management goals and support long-term leadership stability.
When protecting your executives means protecting your organization’s future, TruePlan delivers the clarity, expertise and guidance hospital leaders can trust.