Carve Out Plan

Carve Out Plan
  • Replaces group coverage with individual coverage of a first dollar basis after a period of two years of disability.
  • This reduces the volatility of group claims reserves and therefore reduces group premium cost.
  • Discriminates against the most highly compensated by providing a greater percentage of higher quality benefits to executives at lower income levels.
  • It also provides the greatest amount of higher quality individual benefits at the highest overall cost.