The Covala Group Platform Enables Large Employers to Close Income Protection Gaps Through a Best in Class Process

The Employer

With nearly $30 billion in consolidated total assets, this regional bank provides its products and services on a natural platform. This bank has received outstanding accolades, from earning superior five-star ratings from BauerFinancial to being recognized as one of the “Best Banks in America 2016.”


The Challenge

Under the Group LTD plan, over 500 highly compensated employees had one or more of the following income protection gaps:

  • Base salary above the maximum monthly benefit is not covered
  • All bonus compensation is not covered
  • When the plan is employer paid, the benefits are subject to income tax when paid

The Solution

To close these gaps, Covala Group enrolled and administered IDI benefits on a GSI* basis:

  • Maximum monthly benefits increased by $10,000
  • Bonus compensation covered
  • 75% replacement ratio to close Group LTD “tax-gap”


In addition, the individual policies provide:

  • Portability
  • Premium discount from retail rates
  • Incremental Catastrophic benefit of up to $10,000 per month


The flexibility of the platform not only yields higher participation but also better options for the eligible employees.

For example, some employees had existing policies they had previously acquired on their own.  Through the enrollment process, Covala Group helped them compare existing coverage to the new offer in order to make the most educated decision possible – even if that meant keeping the old policy and only receiving a reduced benefit through the new offer.

Additionally, the flexibility of the platform enabled the Cost of Living Adjustment (COLA) rider to be offered as an optional add-on for each eligible employee.  Traditionally this rider must be either a) required for all participants (higher cost) or b) not available at all (lack of choice).  Covala Group’s enrollment materials clearly communicated this valuable feature resulting in 60% of participants electing the COLA rider.


* Guaranteed Standard Issue (GSI) coverage bypasses the full medical and financial underwriting process.