Safeguard your income if you're unable to work due to a qualified illness, injury, mental health condition, or pregnancy.
You likely already have home, auto, and life insurance to protect against unexpected losses. But have you considered how to protect your income if you’re unable to work due to an unforeseen disability? What would happen if illness or injury left you without a paycheck for months or even years?
Long-term disability (LTD) insurance is designed to offer that protection, acting as a crucial safety net for you and your family by replacing up to 60% of your income if you cannot work for an extended period of time. You choose if benefits start within 90 or 180 days of disability, and there's even an option that includes contributions to a retirement account while you're receiving monthly disability benefits, helping you stay on track for your long-term financial goals.
Outside of the 30-day new hire enrollment period, enrollment in LTD insurance or increasing your coverage requires you to undergo medical underwriting. This involves providing the plan administrator, The Standard, with health information that is used to either approve or deny your enrollment.
However, during this year's Open Enrollment, you have the opportunity to enroll in LTD insurance or increase your coverage without providing proof of good health*. To take advantage of this special enrollment opportunity, you must enroll or increase your coverage during the Open Enrollment period, November 4 - 15, 2024, with your new coverage beginning on January 1, 2025.
*If you have previously applied for LTD and been denied coverage by The Standard, you are not eligible to enroll during this special enrollment period.
Here are some of the key benefits and reasons to consider enrolling in this voluntary coverage:
Affordable group rates. The group rates offered through employer plans are typically much lower than the rates of individual plans. Your monthly premiums are based on your age, salary, and coverage level and are deducted from your paycheck after taxes.
Coverage to suit your needs. There are four coverage options to choose from. You decide if benefits will begin after 90 or 180 days of disability and whether or not to add the annuity contributions benefit, which protects your retirement income while you're unable to work.
Retirement income protection. If you select an option with the annuity contribution benefit, a contribution to an annuity savings account will be made on your behalf if you become disabled and are eligible for LTD benefits. This feature ensures that contributions towards your retirement savings continue, even while you are unable to work.
Frequently Asked Questions
Long-Term Disability (LTD) insurance provides financial protection by replacing a portion of your income if you’re unable to work for an extended period due to illness or injury.
Typically, yes. Outside of the 30-day new hire enrollment period, enrollment in LTD insurance or coverage increases requires you to undergo medical underwriting. This involves providing the plan administrator, The Standard, with health information. They use that information to either approve or deny your enrollment. However, during this year's Open Enrollment, you can enroll or increase your coverage without this step.
Full-time (75% FTE or greater) appointed academic and staff employees actively employed by IU are eligible to enroll in the voluntary LTD insurance plan.
If you have previously applied and been denied coverage, you are not eligible to enroll during this special enrollment period.
There is not a specific list of disabilities that are considered "qualified disabilities" under the plan.
When you file an LTD claim, your doctor(s) are required to submit an attending physician statement along with supporting medical records indicating that you are unable to work. The Standard then uses this information to determine if you’re eligible for benefits under the plan (i.e., if you're unable to perform your job duties due to a physical illness, injury, pregnancy, or mental health condition).
First 24 months of disability: During the 90 or 180-day waiting period and the first 24 months following it, you're considered disabled if you can’t perform your usual job duties due to your condition. This is sometimes referred to as the "own occupation period" by The Standard. If you can perform some duties but can't earn 80% or more of your regular salary, you're still considered partially disabled.
After the first 24 months: After the first 24 months, you're considered disabled if you can’t perform any job duties that you’re reasonably qualified for, based on your education, training, or experience. This is sometimes referred to as the "any occupation period" by The Standard.
Mental health conditions: If your disability is due to a mental illness, benefits won’t be payable beyond the "own occupation period."
Yes, you can enroll in LTD as long as you haven’t been previously denied coverage by The Standard. However, your coverage will only start once you are actively working again and have completed at least one full day of work.
LTD coverage is designed for employees who become unable to work due to an illness or injury after enrollment. If you currently have a disability that is preventing you from working, any newly filed claim after electing coverage could be denied.
This special enrollment period is "guaranteed issue" meaning you do not have to go through medical underwriting or answer any medical questions to enroll. However, the plan does have some pre-existing condition limitations. Depending on your medical situation and work history, those limitations may not apply in your case. Review the LTD plan certificate for additional details.
No. Your monthly premiums are made on an after-tax basis making any future payments from The Standard tax-free.
IU's LTD insurance can only be purchased for the employee, and does not extend to your spouse or children.
Potentially, yes. If you separate from the university for any reason other than retirement, you may be able to convert the coverage to an individual policy with The Standard. Specific conditions must be met to be eligible for conversion, which can be found in the LTD Conversion Application.
