Long-Term Disability (LTD) Completion Plan

Many people first think of accidents and injuries as a primary cause of disabilities.  While they certainly do account for a significant number of total disability claims, approximately 90% of all disabilities are caused by illnesses rather than accidents.

The average group long-term disability (LTD) claim lasts 34.6 months*.  Whenever an illness or injury does occur, some people may only be out of work for a few weeks or months, others may not ever return to work full time, receiving payments until retirement age.

*Gen Re, U.S. Group Disability Rate & Risk Management Survey 2012

Any benefits received from Social Security are not payable in addition to your group long-term disability (LTD) plan, as company-provided LTD plans are structured to offset directly with any payments from SSDI.  Further, SSDI can be very limited and difficult to qualify for:

• 65% of initial SSDI claim applications were denied in 2012.
• 7.3% of SSDI recipients received less than $500 monthly.
  • 46% received less than $1,000 per month.
  • 93% received less than $2,000 per month.*

All benefits payable under the new LTD Completion policy would not offset with any group LTD payments, but rather pay in addition to your current group LTD coverage.

*U.S. Social Security Administration, Disabled Worker Beneficiary Data, December 2012

Below are some recent articles that may be of interest, relating to both the opportunity to protect more of your income and assets from the potential impact of an unexpected illness or injury, as well as other useful details about the types of policies available.
http://www.usatoday.com/story/money/personalfinance/2013/05/07/disability-insurance-benefits/2127267/
http://fortune.com/2012/06/26/dont-let-illness-derail-your-retirement/

The Council for Disability Awareness (CDA) is a nonprofit organization dedicated to educating the American public about the risk and impact of an income-interrupting illness or injury. You can visit their website at www.disabilitycanhappen.org for additional information and research.

Many Americans are adequately protected with enough life insurance.  With today’s medicine, conditions that used to be life-threatening can now be treated more effectively and may simply inhibit the ability to work. As you can see below, the odds of disability at any age are greater than death for both males and females by a significant margin:

Age 30 – Males 4.0 times more likely; Females 7.6 times more likely

Age 40 – Males 2.9 times more likely; Females 5.9 times more likely

Age 50 – Males 2.3 times more likely; Females 3.8 times more likely

^{Source: Gen Re Disability Fact Book, 2013-2014 edition}

Your current group LTD plan can provide benefits to replace a portion of your base salary in the event of an illness or injury which keeps you out of work for an extended period.  LTD Completion is an individual disability insurance policy which can replace much more of your total compensation, including bonus, in the event of a long-term disability. Additional features include*:

• Heavily Discounted Rates
• Catastrophic Benefit – Provides up to 100% income replacement for more severe impairments
• Coverage Increase Options – Allows your policy to keep up with future income increases, no underwriting required

Because it is owned by you, it is part of your personal financial protection and can be taken with you should you ever leave Alera Group.

*Summary of additional features included with the Unum policy offered during this Open Enrollment, please refer to sample policy for complete provisions.

The Unum policy is non-cancelable to age 67 – meaning both the cost and coverage is guaranteed not to increase up to age 67 (unless you elect to increase your coverage to cover more compensation).  The policy can also be continued beyond age 67, please email SERVICE@LTDCOMPLETION.COM for any additional questions.

No. If you are eligible for coverage, upon approval, you will be covered beginning on the effective date for any conditions you may already have or even receiving treatment for.

Benefits are payable for approved claims after 90 days of disability and payments will continue each month until you are no longer disabled and able to return to your occupation full time, or up to age 67 if you are not able to return to work. For disabilities beginning at or beyond age 64, benefits may be payable beyond age 67 according to the schedule below:

Age 64 – 36 months
Age 65 but less than 75 – 24 months
Age 75 and over – 12 months

Disability is defined as unable to perform the material and substantial duties of your occupation; the potential ability to perform OTHER occupations does not disqualify you for benefits.  The policy also provides benefits if you are able to work part time, but not full time.  Please see sample policy available on the website for complete provisions.

An individual’s eligibility for benefits is determined by all factual circumstances presented as well as the terms and conditions of his/her policy.