Long-term Disability Insurance
Long-term disability provides income replacement benefits after an injury, sickness, or pregnancy results in your continuous disability for more than 180 days. It is an optional coverage offered by the University and provided through Life Insurance Company of North America, a Cigna company.
Note: This coverage is not available to you if you are a faculty or P&A staff member with an appointment 67% time or greater because you are covered by the Academic Disability Plan.
As a newly eligible employee, you may enroll online in MyU within 30 days of employment without providing medical evidence of insurability. Your coverage will become effective the first day of the month following your first day of employment. That means that if you start on April 10, your coverage will begin on May 1, for example.
You may also apply during the annual Open Enrollment in November, and your new coverage will be effective on January 1 of the new plan year.
You can choose an amount of at least $300, up to $5,000, or 60% of your monthly covered earnings, whichever is less. The amount must be in units of $100.
Coverage continues as long as you are certified disabled by Cigna. The maximum period that you are eligible to receive benefits is up to your Social Security normal retirement age.
Pre-existing Condition Exclusion
Even though you do not need to prove you are in good health, the policy does contain a pre-existing condition exclusion. That means there is no coverage for any pre-existing medical condition for the first 24 months after the insurance or increase in insurance takes effect.
A pre-existing medical condition is any disability that is caused by or results from an injury, sickness, or pregnancy, which occurred during the 12 months before the date your coverage began or was increased.
This exclusion also applies to disabilities which were diagnosed, or for which medical care was received, during this 12-month period before the date your coverage began or was increased.
You may decrease the amount of coverage or cancel coverage at any time during the year.
If you wish to enroll again or increase the amount of coverage, you will need to wait until the next Open Enrollment, and the new coverage amount will be subject to the pre-existing condition exclusion.
You pay 100% of the cost of the coverage. Because you pay the premium with after-tax payroll contributions, the benefits you receive are not subject to FICA, federal, and state taxes.
The cost of coverage depends on the monthly benefit amount for which you are eligible and the amount you elect.
The Maximum Monthly Benefit Amount from All Sources is the most you could expect to receive from the combination of long-term disability benefits plus all other sources of deductible income, such as Social Security, employer's retirement plan, and workers’ compensation. The minimum benefit payable under the plan would be $300 or 15% of the benefit purchased, whichever is greater.
You can calculate your Maximum Monthly Benefit Amount by taking your annual salary multiplied by 60 percent; divided by 12 (months); then rounded down to the nearest $100.
You may select any amount shown up to the lesser of your Maximum Monthly Benefit Amount or $5,000.
|Maximum Monthly Benefit from All Sources||2016
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