Case Study: Providing Executive-Level Disability Protection with a Guaranteed Standard Issue (GSI) Solution
- Frank Johnston, MBA, DIA
- Apr 23
- 5 min read
By HILB Life
In today’s competitive professional landscape, executive teams are more essential than ever to the operational success and long-term vision of major organizations. And yet, too often, even highly strategic companies leave their top earners exposed to critical coverage gaps—particularly when it comes to income protection.
This case study spotlights how HILB Life tackled this exact challenge on behalf of a national industry association. The outcome? A custom-crafted Guaranteed Standard Issue (GSI) Disability Insurance plan that gave peace of mind to the executives and assurance to the board that their leadership was protected.
The Challenge: Inadequate Group LTD for High-Earning Executives
A prominent national industry association had a group Long-Term Disability (LTD) policy in place, covering 60% of employees’ base salaries up to a maximum benefit of $13,000 per month. While this cap may be sufficient for many staff members, it proved problematic for the top seven executives—each earning well beyond the threshold covered by the standard group plan.
The Executive Board was proactive and forward-thinking. They understood that these seven individuals were the strategic backbone of the organization, and that a serious illness or injury could not only affect the executives personally but have ripple effects across the entire institution.
Most importantly, the board felt a moral and fiduciary responsibility to ensure that all employees—especially those entrusted with driving the association’s growth—received equitable benefits. They wanted a disability solution that could restore the income replacement percentage to as close to 60% as possible for these top earners, ensuring uniformity and fairness across all levels of the organization.
Key Objectives
Match Income Replacement Percentage – Bring the top 7 executives’ disability coverage closer to the 60% level enjoyed by the rest of the staff.
Avoid Underwriting Roadblocks – Implement a plan with minimal friction, avoiding lengthy medical underwriting or excessive administrative burden.
Ensure Portability – The benefit should be fully portable, enabling each executive to retain their coverage even if they left the organization.
Secure Strong Contract Terms – Deliver a plan with true own-occupation protection, long-term rate guarantees, and a robust benefits structure.
The Solution: Guaranteed Standard Issue (GSI) Disability Insurance
Hilb Life identified the ideal solution: Employer-Paid Guaranteed Standard Issue (GSI) Individual Disability Insurance for just these top 7 executives.
This strategic move allowed the organization to tailor a plan specifically for the high-earning executive tier without disrupting or modifying the group LTD plan for the broader employee base. GSI offered a streamlined way to fill the coverage gap without any medical underwriting, which was a significant advantage for high-performing professionals who may have developed health issues that could otherwise disqualify them from individual policies.
What is GSI Disability Insurance?
Guaranteed Standard Issue (GSI) is a type of group-style disability insurance with individual-level benefits, offered exclusively to specific classes of employees. It provides:
No medical underwriting
Minimal financial underwriting (in this case, a simple census review and executive sign-off)
Fully portable policies
Customizable benefit levels
True own-occupation definitions of disability
Because it was employer-paid, this plan became a no-cost benefit to the executive team while giving the organization powerful retention and protection leverage.
Carrier Selection and Plan Design
After a competitive analysis and proposal review, Ameritas emerged as the best-fit carrier for this specialized need. Here’s why:
Plan Highlights:
Monthly Benefit: $10,000
Elimination Period: 90 days
Benefit Duration: To age 65
Policy Type: Individual, fully portable
Definition of Disability: True Own Occupation
Rate Guarantees: To age 65
This structure meant that each of the seven executives would receive up to $10,000/month in additional benefits, closing the income replacement gap that existed under the group LTD plan. When combined with the $13,000/month from the group plan, total benefits approached the desired 60% income replacement target for even the highest earners.
Perhaps most critically, the Ameritas contract guaranteed pricing and benefit structure through age 65, locking in long-term value and financial predictability.
Seamless Implementation with Zero Underwriting Hassles
One of the top concerns for organizations when adding additional coverage—especially for busy executive teams—is the implementation process. Nobody wants their leadership bogged down in paperwork, lab tests, or intrusive medical exams.
Thanks to the GSI framework, implementation was swift and painless:
Step 1: The executive team completed a basic census form including age, job title, and base income.
Step 2: No medical underwriting was required.
Step 3: Financial underwriting was handled through the employer census and income verification, eliminating the need for personal financial statements.
Once completed, the policies were issued efficiently, and the entire team was fully covered—without the administrative headache.
Cost & Compensation Overview
The premium for the full GSI program covering the seven executives totaled $20,300 annually. This investment was seen as modest considering the level of protection provided for such high-value team members.
Why This Case Matters
1. Leadership Alignment with Organizational Values
The Executive Board’s initiative to close the benefit disparity gap showed a deep commitment to fairness and leadership integrity. When an organization treats its leaders with care and parity, it creates a culture of trust and empowerment that filters throughout the organization.
2. Future-Proofing Talent Retention
High-earning executives are also high-value targets for competitors. By offering fully portable, individually owned disability coverage, the association added a retention tool to its arsenal. This benefit now stands out in compensation negotiations and reinforces the value of staying with the organization.
3. Avoiding the “Silent Risk” of Incomplete Coverage
Many businesses falsely assume that group LTD coverage is “good enough” for all team members. This case shows how even well-intentioned plans can fall short when it comes to senior leadership, exposing the organization to potential instability if key leaders become unable to work.
4. Optimizing Without Overhauling
Instead of restructuring the entire group LTD framework, this solution provided a surgical fix to a focused problem. No overhaul was required, and the result was a fully integrated system where benefits now scale appropriately across all levels.
Lessons Learned for Advisors and Employers Alike
For Brokers & Advisors:
GSI Is a Powerful Niche Solution – Ideal for targeting small executive groups within a larger organization where standard group benefits fall short.
Simplicity Wins Deals – GSI’s no-medical, no-fuss process is a huge selling point for executives and HR departments.
Strong Carrier Partnerships Matter – Working with a reliable carrier like Ameritas ensures competitive pricing and solid terms that hold up over time.
For Employers & HR Leaders:
Review Executive Coverage Separately – Don’t assume uniform coverage is equitable. Always check the max monthly caps against actual incomes.
GSI Is Cost-Effective – For a relatively low investment, companies can offer top-tier income protection that reinforces commitment to their leaders.
Boost Recruiting and Retention – Benefits like this separate you from competitors who overlook these gaps.
A Strategic Win for All Involved
This case study is a prime example of how HILB Life and HILB Life go beyond traditional brokerage services to craft strategic, outcome-driven solutions for their clients. By recognizing the income protection gap in executive coverage, offering a customized GSI solution, and seamlessly executing on delivery, the result was a triple win:
For the Executives: Peace of mind with complete income protection and portable coverage.
For the Board: Fulfilled mission of equity, protection, and responsible leadership.
For HILB Life: A demonstration of strategic leadership and expert implementation in the DI space.
Ready to Secure Your Executives' Financial Futures?
If you’re a business leader, HR executive, or benefits consultant and want to explore how a Guaranteed Standard Issue solution can elevate your executive benefits package, we’re here to help.
Contact us today for a consultation or quote:
Frank Johnston
Disability & Life Specialist
📞 267-898-3518
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