ELIGIBILITY
Who is eligible to apply?
Dues paying members working a minimum of 20 hours per week in the financial services industry who fall into these NAPFA member categories:
New XXXX members who apply within the first 60 days of membership are guaranteed acceptance (no medical questions) for the STD and/or LTD coverage.
Employees of a XXXX member or XXXX Member Firm must be employed for 90 days before enrolling in the STD and/or LTD coverage. They then have 60 days to enroll, guaranteed acceptance for the STD and LTD coverage. The STD "Extended Benefit Waiting Period" does not apply.
They must be an employee of a XXXX member or XXXX member firm and be working at least 20 hours per week in the financial services industry. Employees can apply for coverage even if the member does not.
Members with a date of membership outside 60 days can enroll anytime but medical underwriting is required and a Medical Health Statement (MHS) will need to be completed for the LTD coverage only. Employees of NAPFA members or a NAPFA Member Firm outside of 150 days (the 90 day waiting period + 60 day enrollment period) can enroll but must go through medical underwriting for the LTD coverage only.
Important: If you are covered under another group disability plan that you intend to keep, please contact us. The NAPFA group disability benefit(s) will offset any other group coverage you have in place.
If you have ever applied medically for this plan, or other group disability and life plans offered by The Standard Insurance Co. and you were declined, medical underwriting is required to apply for these plans regardless of any open enrollment periods.
FREQUENTLY ASKED QUESTIONS
1. How is disability defined?
Disability’ is defined as a sickness or injury that prevents you from performing with reasonable continuity the material duties of your own occupation. (There is no longer an "any occupation" period.) Partial Disability benefits are also included.
2. Does the plan have a pre-existing conditions clause?
This Group plan has a 6/24 pre-existing condition clause. This means if you received care or consultation for a mental or physical condition within the 6 months just prior to being insured, a disability resulting from that condition will be not considered for claims payment unless it occurs after you have been on the plan for 24 months.
3. How much monthly benefit can I purchase?
Monthly benefits are equal to 60% of your average prior earnings to a monthly benefit maximum. There are two plan options; Plan A and Plan B. Plan A has a maximum monthly benefit of $6,000, covering a maximum monthly income of $10,000; Plan B has a benefit maximum is $15,000, covering a maximum monthly income of $25,000.
4, Will this plan reduce other disability benefits I may receive at claim time?
Individual Disability Policy benefits will NOT offset with your XXXX Group Long Term Disability Insurance.
This XXXX Group Plan will offset with any other Group Disability Insurance you have in place and intend to keep. Examples include Employer Group Disability plans or other Association Group Disability plans. Please contact us to discuss your options.
5. Should I replace my individual disability coverage policy (non-can) with this new policy?
Generally, NO. Instead of a complete replacement, you might consider modifying your existing plan and using the savings to purchase the XXXX plan as a supplement. For instance, you could extend your elimination period, reduce your monthly benefit, remove the cost of living rider etc. A combination of plans may be the best strategy.
6. If a new member or employee of a member wants to apply but does not have a prior years income in the financial services industry, can they still apply?
Yes, they can enter the minimum monthly income requirement of $167.00 on the benefit/premium calculator. This will generate a minimum monthly benefit of $100.00. Each year they should increase their benefits based on increased earnings.
7. What type of financial documentation do I need to show to purchase benefits?
There is no financial underwriting at time of application. If you have a claim, Standard Insurance Company will require proof of income such as last year’s tax return, profit and loss statements, W-2 etc.
8. Can I apply for coverage that is less than 60% of earnings on LTD?
No. Due to the possible risk of anti-selection, and since Standard Insurance Company has created a group premium structure for this plan, you are required to input your full average monthly income and generate the appropriate benefit and premium.
9. Should I adjust my benefits each year as my income increases (or decreases)?
Yes, you are required to update your income each year.
10. Will my personal information listed on the application be kept in the strictest confidence and security?
YES. All information entered on your electronic application is secured by TSL Security Protocol. All information gathered is used solely for the purpose of plan enrollment and will be used for no other purpose. Keep in mind that all plan correspondence is sent by email, including your annual benefits statement.
11. How do I pay my premiums?
Premiums are deducted automatically from the bank account of your choice on or before the 5th of each month and will be listed on your statement as "Association DI Plans, LLC XXXX LTD".
Currently the monthly bank draft is the only method of payment. NOTE: Premiums increase in 5 year age brackets. Your premiums will be adjusted the month following any birthday that moves you into the next bracket. You can use the "Get A Free Quote” calculator to see how premiums will adjust over time based on current rates.
12. Should I choose Plan B if my monthly income is currently under $10,000?
Yes, if you think there is a possibility your income will exceed $10,000 in the future and you want to be able to keep purchasing more coverage without having to evidence insurability, you should choose Plan B. The only difference between the options is the benefit maximums. Both plans use the same rate structure and have the same policy definitions. If your income never rises above $10,000, there is no disadvantage to being in Plan B.
13. Who should choose Plan A?
Since members are required to keep their benefits at 60% of their income, Plan A is a good choice for members who don’t desire more than $6,000 of benefit. An example might be a member who is using the plan to supplement an individual disability policy.
14. What if I choose Plan A and want to switch to Plan B later?
If you decide to switch to Plan B you will be subject to the preexisting condition clause for the difference in any benefit you may receive coming over from Plan A. This is why we advise you to lock in your insurability by choosing Plan B now even if you don’t yet need the higher benefit level.
15. How do I calculate my monthly Long Term Disability benefits and premiums and enroll?
Once you have decided on Plan A or B, click the link to the plan page and use the “Get A Free Quote” button to calculate rates and benefits. “Apply Now” will take you to our secure, online application form.
16. How long can benefits are paid?
Long Term Disability (LTD): For claims occurring on or before age 61, benefits can be paid to Social Security Normal Retirement Age. Benefit period maximums vary for claims occurring between age 62 and 69. The minimum available is 1 year. Benefits are 1 year for claims at age 69 or older.
17. Are benefits adjusted for inflation while on claim in the LTD plan?
After receiving LTD benefits for 5 years your benefits will be adjusted by the greater of 3% or ½ of the CPI index.
18. How long must I be disabled in order to receive benefits?
The Benefit Waiting Period is 90 days.
19. What is the benefit period if my claim starts after age 60?
Benefit Period Duration Chart
61 or younger -To age 65, or to SSNRA, or 3 years 6 months, whichever is longest.
62- To SSNRA, or 3 years 6 months, whichever is longer.
63- To SSNRA, or 3 years, whichever is longer.
64- To SSNRA, or 2 years 6 months, whichever is longer.
65- 2 years
66- 1 year 9 months
67- 1 year 6 months
68- 1 year 3 months
69 or older- 1 year
SSNRA means your normal retirement age under the Federal Social Security Act, as amended.
20. Can a portion of my retirement plan contributions be insured in the LTD plan?
Yes, there is a unique annuity contribution protection benefit whereby Standard Insurance Company will contribute an additional monthly benefit (10% of pre disability earnings up to $5,000/mo. max) into an annuity to help you continue to save for retirement. There is a 3-year elimination period for this benefit. However, once satisfied, there will be a retroactive lump sum payment for the preceding three years if your disability benefits go beyond three years.
21. Are there benefits in the LTD for long term care expenses resulting from a catastrophic disability?
Yes, an additional monthly benefit (20% of predisability earnings to a max benefit of $2,000/mo. on Plan A, maximum $5,000/mo on Plan B ) to help with long term care expenses can be paid.
22. Does the policy have a conversion option?
Yes, in the LTD plan only, up to $4,000/mo. without medical underwriting. You must be on the plan at least one year prior to termination to be eligible for conversion.
23. Can the policy be canceled?
Yes, if Standard Insurance Company or XXXX cancels the agreement.
24. Are certain disabilities subject to limited pay periods?
Yes, disabilities caused by mental disorders and substance abuse.
25. What types of disabilities are excluded from coverage?
Disabilities resulting from war, self-inflicted injuries, pre-existing conditions, being unable to work because of loss of professional license or criminal act.
Who is eligible to apply?
Dues paying members working a minimum of 20 hours per week in the financial services industry who fall into these NAPFA member categories:
- XXXX Registered Financial Advisors
- XXXX Associates
Student Affiliates - Employees of XXXX Members or a XXXX Member Firm
New XXXX members who apply within the first 60 days of membership are guaranteed acceptance (no medical questions) for the STD and/or LTD coverage.
Employees of a XXXX member or XXXX Member Firm must be employed for 90 days before enrolling in the STD and/or LTD coverage. They then have 60 days to enroll, guaranteed acceptance for the STD and LTD coverage. The STD "Extended Benefit Waiting Period" does not apply.
They must be an employee of a XXXX member or XXXX member firm and be working at least 20 hours per week in the financial services industry. Employees can apply for coverage even if the member does not.
Members with a date of membership outside 60 days can enroll anytime but medical underwriting is required and a Medical Health Statement (MHS) will need to be completed for the LTD coverage only. Employees of NAPFA members or a NAPFA Member Firm outside of 150 days (the 90 day waiting period + 60 day enrollment period) can enroll but must go through medical underwriting for the LTD coverage only.
Important: If you are covered under another group disability plan that you intend to keep, please contact us. The NAPFA group disability benefit(s) will offset any other group coverage you have in place.
If you have ever applied medically for this plan, or other group disability and life plans offered by The Standard Insurance Co. and you were declined, medical underwriting is required to apply for these plans regardless of any open enrollment periods.
FREQUENTLY ASKED QUESTIONS
1. How is disability defined?
Disability’ is defined as a sickness or injury that prevents you from performing with reasonable continuity the material duties of your own occupation. (There is no longer an "any occupation" period.) Partial Disability benefits are also included.
2. Does the plan have a pre-existing conditions clause?
This Group plan has a 6/24 pre-existing condition clause. This means if you received care or consultation for a mental or physical condition within the 6 months just prior to being insured, a disability resulting from that condition will be not considered for claims payment unless it occurs after you have been on the plan for 24 months.
3. How much monthly benefit can I purchase?
Monthly benefits are equal to 60% of your average prior earnings to a monthly benefit maximum. There are two plan options; Plan A and Plan B. Plan A has a maximum monthly benefit of $6,000, covering a maximum monthly income of $10,000; Plan B has a benefit maximum is $15,000, covering a maximum monthly income of $25,000.
4, Will this plan reduce other disability benefits I may receive at claim time?
Individual Disability Policy benefits will NOT offset with your XXXX Group Long Term Disability Insurance.
This XXXX Group Plan will offset with any other Group Disability Insurance you have in place and intend to keep. Examples include Employer Group Disability plans or other Association Group Disability plans. Please contact us to discuss your options.
5. Should I replace my individual disability coverage policy (non-can) with this new policy?
Generally, NO. Instead of a complete replacement, you might consider modifying your existing plan and using the savings to purchase the XXXX plan as a supplement. For instance, you could extend your elimination period, reduce your monthly benefit, remove the cost of living rider etc. A combination of plans may be the best strategy.
6. If a new member or employee of a member wants to apply but does not have a prior years income in the financial services industry, can they still apply?
Yes, they can enter the minimum monthly income requirement of $167.00 on the benefit/premium calculator. This will generate a minimum monthly benefit of $100.00. Each year they should increase their benefits based on increased earnings.
7. What type of financial documentation do I need to show to purchase benefits?
There is no financial underwriting at time of application. If you have a claim, Standard Insurance Company will require proof of income such as last year’s tax return, profit and loss statements, W-2 etc.
8. Can I apply for coverage that is less than 60% of earnings on LTD?
No. Due to the possible risk of anti-selection, and since Standard Insurance Company has created a group premium structure for this plan, you are required to input your full average monthly income and generate the appropriate benefit and premium.
9. Should I adjust my benefits each year as my income increases (or decreases)?
Yes, you are required to update your income each year.
10. Will my personal information listed on the application be kept in the strictest confidence and security?
YES. All information entered on your electronic application is secured by TSL Security Protocol. All information gathered is used solely for the purpose of plan enrollment and will be used for no other purpose. Keep in mind that all plan correspondence is sent by email, including your annual benefits statement.
11. How do I pay my premiums?
Premiums are deducted automatically from the bank account of your choice on or before the 5th of each month and will be listed on your statement as "Association DI Plans, LLC XXXX LTD".
Currently the monthly bank draft is the only method of payment. NOTE: Premiums increase in 5 year age brackets. Your premiums will be adjusted the month following any birthday that moves you into the next bracket. You can use the "Get A Free Quote” calculator to see how premiums will adjust over time based on current rates.
12. Should I choose Plan B if my monthly income is currently under $10,000?
Yes, if you think there is a possibility your income will exceed $10,000 in the future and you want to be able to keep purchasing more coverage without having to evidence insurability, you should choose Plan B. The only difference between the options is the benefit maximums. Both plans use the same rate structure and have the same policy definitions. If your income never rises above $10,000, there is no disadvantage to being in Plan B.
13. Who should choose Plan A?
Since members are required to keep their benefits at 60% of their income, Plan A is a good choice for members who don’t desire more than $6,000 of benefit. An example might be a member who is using the plan to supplement an individual disability policy.
14. What if I choose Plan A and want to switch to Plan B later?
If you decide to switch to Plan B you will be subject to the preexisting condition clause for the difference in any benefit you may receive coming over from Plan A. This is why we advise you to lock in your insurability by choosing Plan B now even if you don’t yet need the higher benefit level.
15. How do I calculate my monthly Long Term Disability benefits and premiums and enroll?
Once you have decided on Plan A or B, click the link to the plan page and use the “Get A Free Quote” button to calculate rates and benefits. “Apply Now” will take you to our secure, online application form.
16. How long can benefits are paid?
Long Term Disability (LTD): For claims occurring on or before age 61, benefits can be paid to Social Security Normal Retirement Age. Benefit period maximums vary for claims occurring between age 62 and 69. The minimum available is 1 year. Benefits are 1 year for claims at age 69 or older.
17. Are benefits adjusted for inflation while on claim in the LTD plan?
After receiving LTD benefits for 5 years your benefits will be adjusted by the greater of 3% or ½ of the CPI index.
18. How long must I be disabled in order to receive benefits?
The Benefit Waiting Period is 90 days.
19. What is the benefit period if my claim starts after age 60?
Benefit Period Duration Chart
61 or younger -To age 65, or to SSNRA, or 3 years 6 months, whichever is longest.
62- To SSNRA, or 3 years 6 months, whichever is longer.
63- To SSNRA, or 3 years, whichever is longer.
64- To SSNRA, or 2 years 6 months, whichever is longer.
65- 2 years
66- 1 year 9 months
67- 1 year 6 months
68- 1 year 3 months
69 or older- 1 year
SSNRA means your normal retirement age under the Federal Social Security Act, as amended.
20. Can a portion of my retirement plan contributions be insured in the LTD plan?
Yes, there is a unique annuity contribution protection benefit whereby Standard Insurance Company will contribute an additional monthly benefit (10% of pre disability earnings up to $5,000/mo. max) into an annuity to help you continue to save for retirement. There is a 3-year elimination period for this benefit. However, once satisfied, there will be a retroactive lump sum payment for the preceding three years if your disability benefits go beyond three years.
21. Are there benefits in the LTD for long term care expenses resulting from a catastrophic disability?
Yes, an additional monthly benefit (20% of predisability earnings to a max benefit of $2,000/mo. on Plan A, maximum $5,000/mo on Plan B ) to help with long term care expenses can be paid.
22. Does the policy have a conversion option?
Yes, in the LTD plan only, up to $4,000/mo. without medical underwriting. You must be on the plan at least one year prior to termination to be eligible for conversion.
23. Can the policy be canceled?
Yes, if Standard Insurance Company or XXXX cancels the agreement.
24. Are certain disabilities subject to limited pay periods?
Yes, disabilities caused by mental disorders and substance abuse.
25. What types of disabilities are excluded from coverage?
Disabilities resulting from war, self-inflicted injuries, pre-existing conditions, being unable to work because of loss of professional license or criminal act.