In the race to attract and keep top-notch talent, employers have the opportunity to differentiate themselves by offering a thoughtfully crafted, strong benefits package. Enter Guaranteed Standard Issue (GSI) disability insurance policies.

So what is GSI disability insurance?

• GSI disability insurance is a group of individual disability insurance policies that are issued as a "batch" to a group of employees at the same employer
• GSI policies are issued without medical underwriting and without exclusions for an individual's personal health history or riskier hobbies
• GSI policies are usually at a meaningful discount to what each employee could obtain if they were shopping for disability coverage alone
• Once a company has a GSI program up and running, new employees are allowed to join it, so long as they do so within a prescribed time frame (e.g. first 30 days of employment)
• GSI and "group" long-term disability insurance are two different things. Oftentimes, a GSI program is added on top of the group plan, to offer better benefits (most group plans have big gaps in coverage and are non-portable)
• A key difference between GSI and group disability insurance policies is that GSI policies are portable (employees can take them to another job)
• GSI policies can be designed to cover more of employees' income and include better policy features than your typical group long-term disability plan

Why Employees Love GSI Disability Insurance

Employees can get disability insurance without the hassle of medical underwriting - that means no blood draw, no urine sample, no questions about health and hobbies. It is hard to beat quick, convenient coverage that’s as inclusive as it gets. Whether they’re a business owner, a valued team member with a unique medical profile, or someone who loves high-flying hobbies like piloting planes, GSI has them covered.

GSI disability policies also usually include a significant discount on the coverage. Plus, the policy is fully portable. So, if an employee decides to chase their entrepreneurial dreams or switch jobs, or if in an economic downturn even good employees have to be let go, everyone can keep their coverage going -- employees would simply step in and start paying the premiums themselves. GSI disability policies offer such great peace of mind.

Why Employers Love GSI Disability Insurance

Business owners and HR professionals who have ever had a valued team member come into their office and disclose terrible personal health news will understand the disruption and shock this can bring -- not only for the affected team member, but for colleagues and associates as well.

Offering a compelling benefits package to your employees, thereby ensuring a meaningful baseline of reliable income through challenging times, can massively reduce the stress and disruption to the team. Employers can ensure their ill or injured employees are supported, without needing to chance the company's own financial plan or confront uncomfortable questions of fairness, which can also carry legal implications. Having a clear, thoughtful plan for how disabled employees will be treated provides comfort and security to everyone involved. 

Offering GSI disability insurance is like adding a shiny new tool to the employer's benefits toolkit. It’s a competitive, attractive perk that can be customized to fit your company’s goals and considerations. With many carriers offering GSI programs, we at AboveBoard can help you find the perfect match for your goals. Are you all about keeping costs low, or is maximizing the monthly benefit your jam? Maybe you want to offer a little something extra for those who want more than the standard GSI amount. We’ve got you covered.

We’ll work with your HR team and any execs involved in plan design to craft a plan that’s just right. Whether you want to treat everyone equally or add a special executive tier, we’ll help you navigate the options. Ready to take your benefits game to the next level? Shoot us a message, or if you’re already chatting with someone from the AboveBoard team, just drop us a note. We’re here to help you make your benefits package the talk of the town!

GSI FAQ

Q: Is GSI disability insurance for a group, or individuals?

A: GSI disability insurance policies are individual policies (each covered employee will get their own policy document, with their own unique policy number) but they are issued on a group basis. For example, Insurance Carrier A issues 27 policies to each of the 27 partners of BestEver Law Firm. Now each partner has a unique policy number and their coverage is fully their own and portable (i.e. no longer tied to a particular employer).

Q: How many employees does a company need to have to do GSI?

A: In general, many options in the market become available when you have at least 10 full-time employees who work in non-manual labor roles. However, for highly compensated employees in office duties-only roles, there are excellent options starting at 4 or 5 employees.

Flexibility on certain terms - such as whether all employees must participate or not - can increase when the group is closer to 100+ full-time employees.

Q: Who pays for GSI?

A: In general, the employer.

However, there are some nuances that can be subject to plan design, and thus be responsive to company-specific goals. While the cash payment for the plan needs to come from the employer, some employers might choose to pay for some of the coverage with employees' "after-tax earnings".

Q: What happens if an employee covered by a GSI policy leaves the employer?

A: The departing employee has the option, but no obligation, to take coverage with them; the departing employee simply needs to step into the role of paying 100% of premiums on the policy.

Q: My employer already offers long-term disability -- do we really need GSI too?

A: Most group long-term disability plans leave huge gaps that set employees up for a minimum drop in take-home pay of 40% when a sick or injured employee goes on claim. A GSI disability insurance program pairs perfectly with a group LTD plan, to fill those gaps. Additionally, and AboveBoard agent can help you figure out if your existing group long-term disability plan is a good deal or not -- i.e. does it make sense to add to or replace the group long-term disability plan.

Q: My employees are not asking me about this -- why should I do it?

A: Have you ever had an employee come to you and disclose a grave health diagnosis? For example, a valued member of your senior leadership team shares a recent scan found Stage 3 cancer -- treatment options are abundant and they are hopeful, but it is going to be a journey. Being able to assure your affected employee that they (and their loved ones) will be well taken care of during this journey, without risking or revising your company's own financial plan, is the place you want to be at if and when that happens. The average long-term disability is 3 years -- much longer than most businesses would want to finance out-of-pocket, and some disabilities are meaningfully longer. 

Q: I have questions, but this sounds interesting -- what's the next step?

A: If you're already in touch with AboveBoard, simply let any AboveBoard team member know you are interested in looking at GSI -- you don't even really need to remember that, just say something like "disability coverage for a group of us" -- we'll know what you mean.

If this would be your first interaction with AboveBoard, drop us a note about "GSI inquiry", with a phone number, email and your name.