Group Long Term Disability Plan

What It Is

Long term disability insurance protects participants’ incomes by replacing a percentage of the insured’s lost income if he or she becomes disabled because of an injury or illness, including alcoholism and drug addiction.

The NYSUT Member Benefits Trust-endorsed group plan is only available for purchase by local associations, their benefit funds, and employers. The Group Plan can be tailored to meet the needs and financial resources of your group.

Since 1992, First Unum Life Insurance Company has provided the NYSUT Member Benefits Trust-endorsed Group Long Term Disability Plan. First Unum Life Insurance Company is a significant member of the S&P 500 and the nation’s largest underwriter of long term disability insurance by a 2-1 margin over the nearest competitor. Innovative product development is a feature of this company. Enhancements to the program include Disability Plus and Worldwide Emergency Travel Services.

The First Unum Life Insurance Company’s Group Long Term Disability Plan is a NYSUT Member Benefits Trust (Member Benefits)-endorsed program. Member Benefits has an expense reimbursement/endorsement arrangement of 5% of gross premiums for this program. All such payments to Member Benefits are used solely to defray the costs of administering its various programs and, where appropriate, to enhance them. The Insurer pools the premiums of Member Benefits participants who are insured for the purposes of determining premium rates and accounting. Coverage outside of this plan may have rates and terms that are not the same as those obtainable through Member Benefits. Member Benefits acts as your advocate; please contact Member Benefits at (800) 626-8101 if you experience a problem with any endorsed program.

Agency fee payers to NYSUT are eligible to participate in NYSUT Member Benefits Trust-endorsed programs.

Eligibility

The NYSUT Member Benefits Trust-endorsed group plan is only available for purchase by local associations, their benefit funds, and employers.

All in-service participants of your group may participate in the plan.

Features

The basic Group Long Term Disability Plan includes:

• Choice by Plan purchaser of Income Replacement Level (50%, 60%, and 66 2/3%).
• Disability Plus – Income Replacement Level increases to 100% if the disabled participant cannot perform 2 or more activities of daily living.
• Monthly Benefit Limit – the standard monthly maximum is $6,000; lower or higher caps can be set.
• Benefit payable up to age 65; other options are available.
• Elimination Period Options – The amount of time following the start of a disability that a participant must wait to receive payments. Shorter periods have higher premiums. Options are 90, 120, 180 and 360 days.
• Choice by Plan purchaser of disability definition.
• Integration of Group Disability with Social Security and other income sources. Application for Social Security disability benefits is required.
• Worldwide Emergency Travel Services – worldwide medical and travel emergency services for members traveling more than 100 miles from home or outside the U.S.

Plan Options

Optional benefits that your group plan could provide include:

• a Residual Disability Benefit that does not require total disability during the elimination period.
• pension supplements of up to 15% of income contributed by the Plan to the claimant’s pension plan.
• Cost of Living Adjustment (Maximum COLA) of 3% to keep pace with inflation.

Obtain A Quote

The cost of group long term disability insurance is determined by salary replacement levels, average salary, elimination periods and monthly benefits, among other factors. Usually, less than ½ of 1% of covered payroll is a general guideline to use when determining the cost.

To obtain a Group Long Term Disability quote, you must provide:

• demographics, including sex, date of birth and salary
• the specifics of the plan you want
• a copy of the contract or plan booklet and 2 years of claims experience (if available), if you have an existing group long term disability plan.

For more information, please contact Member Benefits toll-free at (800) 626-8101, weekdays from 9 a.m. to 5 p.m. Eastern Time.

Implement A Plan

Once the decision has been made to purchase the NYSUT Member Benefits Trust-endorsed Long Term Disability Plan on a group basis, here’s what needs to be done to implement this plan:

• Complete policy application.
• Provide contact name/address/phone number.
• List of all participants (Participant name, Social security number, Date Of Birth, home address, salary).
• Certificates of coverage and other plan materials mailed to group contact for distribution.