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Disability Income Insurance

Dolores Nehlig, Manes, Kristen  |  3/28/2006 11:19:55 PM

The long-term disability insurance program underwritten by UnitedHealthcare provides affordable financial protection against a disabling illness or injury. UnitedHealthcare Customer Service: 1.888.299.2070, Policy #303972




Major Points of the Program

  • Pays up to 60% of the employee's salary at the time of disability up to $12,000 per month. (Employees who chose the 66.67% rate which was available prior to January 1, 2001, continue to have the higher benefit coverage but with a cap of $9,000 per month.)
  • Benefits are coordinated with other benefits received (e.g., social security, retirement, worker's compensation, etc.).
  • Payments begin after the employee is totally disabled for 90 consecutive days and after all sick leave is exhausted.
  • What is a disability as defined in the contract? When it is determined that:
    • You are not actively at work and are unable to perform some or all of the material and substantial duties of your regular occupation due to your sickness or injury; and
    • You have a 20% or more loss in indexed pre-disability monthly earnings due solely to the same sickness or injury; and
    • You are under the regular care of a physician.
  • Disability must begin while the Covered Person is insured and under the policy. After 24 months of payments, the covered person is disabled when we determine that due to the same sickness or injury, you are unable to perform some or all of the material and substantial duties of any gainful occupation for which you are reasonably fitted by education, training or experience and you continue to suffer a 20% or more loss in indexed pre-disability monthly earnings due solely to the sickness or injury.
  • More information from UnitedHealthcare.


Eligibility for Enrollment

Employees appointed for more than 120 days and 75% of full-time or greater are eligible for enrollment.


Effective Date of Coverage

  • New employees have 30 days to either enroll for or waive coverage under this plan. Coverage is effective on the first day of the month following date of employment.
  • Employees who do not enroll for coverage within the first 30 days and later wish to pick up coverage must provide evidence of insurability and be approved for coverage.


Calculation Method for Monthly Rates and Examples

Premium rates are .482% of income deducted from each paycheck which uses a replacement rate of 60% of income. Examples are:

Monthly Salary

Monthly Premium

$2,000

$9.64

$2,500

$12.05

$3,000

$14.46

$3,500

$16.87

$4,000

$19.28



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