Group Employee Disability Insurance Plan

According to the Social Security Administration, one in four workers will suffer a long-term disability before they reach retirement. With this risk, many workers are looking for disability insurance as part of their employee benefits package. Therefore, if you offer Long Term Disability Insurance coverage as part of your firm’s employee benefits package, you can help recruit and retain your good employees, while staying competitive in today’s marketplace. Long Term Disability Insurance helps make sure you and your employees can pay their monthly bills and out-of-pocket medical expenses if a disabling injury or illness keeps you or an employee from working for a long period of time.
The AIA Trust has now made it possible for members to choose between two insurance carriers for the Group Employee Long Term Disability Plan. We’ve partnered with Principal Financial Group and Unum, both of which offer a wide variety of options available to firms. You get to compare benefits and rates choosing which plan is right for you and your firm. You can secure coverage up to 60% of your gross monthly income up to $6,000 per month for you and your employees. Plus, you have access to affordable group rates to cover all your employees. In fact, many AIA members’ firms who already switched to either of these plans found the cost to be extremely competitive. Each plan is outlined in the tabs above. To request a quote for your firm’s disability options, please download, complete and return the Quote form or contact us for more information.

Principal Financial Group is one of the nation’s largest disability carriers. Your employees can receive up to $6,000 in monthly benefit, as long as it does not exceed 60% of their earnings from before they became disabled. All eligible employees must be working at least 30 hours a week to qualify for this benefit. Principal Financial offers flexible benefits that allow you, the employer, to set the elimination period, benefit duration, benefit percentage, maximum weekly benefit, and own occupation period based on a number of options.

Firm Eligibility:

Coverage is available to firms with 5 or more employees. Also, if your Firm adds an additional line of coverage such as Short Term Disability, then Firms with 3 more employees are eligible.

Employer Contributions/ Employee Participation:

The Employer pays 100% of the contribution and employee participation is 100%.

Elimination Period:

As a Firm you may choose between a 60 days, 90 days, and 180 days elimination period, which is the time between when the injury/illness occurred and when the benefit payment begins.

Benefit Duration:

Your employees can receive benefits for 2 years, 5 years, or up to age 65.
Benefit Percentage/ Maximum Monthly Benefit:
Choose between these three benefit percentages of employee salary for the monthly benefit percentage amount that the employee would receive: 40%, 50%, or 60%, based on the employees’ pre-disability earnings. Firms can also set the maximum monthly benefit amounts choosing between $2,000, $4,000 and $6,000.

Own Occupation Period:

An employee’s own occupation is the occupation the employee was routinely performing when the disability began. This plan allows you to be considered disabled for a period of time if they are unable to perform their own occupation. After this period ends they are considered disabled if they are unable to perform any occupation for which they are or may reasonably become qualified for through education or training. The Employer may choose between the following own occupation period: No own occupation period, 1 year, 2 years, and 3 years.

Additional Benefits Include:

Rehabilitation Incentive
Reasonable Accommodation
Survivor Benefit
Accelerated Survivor
Return To Work Childcare
Medical Premium Supplement
Cost of Living Adjustment (COLA)
Spouse Rehabilitation
Activities of Daily Living (ADL)
Dependent Education
Conversion Privilege
Retirement Plan Supplement

How Principal Defines Disability:

Employees qualify as disabled during the elimination period and own occupation period if, because of sickness, injury or pregnancy, they cannot perform the majority of the substantial and material duties of their own occupation, or they are performing the duties of their own occupation on a modified basis or performing any other occupation and are unable to earn more than 80% of his or her pre-disability earnings.
After completing the own occupation period, employees qualify as disabled if, because of sickness, injury or pregnancy, they cannot perform the majority of the substantial and material duties of any occupation of which they are or may become qualified based on their education, training or experience, or they are performing the substantial and material duties of their own occupation or any other occupation on a modified basis and unable to earn more than 60% income loss.

Limitations:

Pre-existing conditions – 12 months prior/12 months insured
Mental Health Conditions – 24 month benefit limit
Drug and Alcohol Abuse Conditions – 24 month benefit limit

Unum was ranked first in disability benefits for 32 consecutive years and presently insures more than 3,000 architect firms. Your employees may receive up to $6,000 per month while they are disabled. The amount they receive is based on the amount they were earning before their disability began, but cannot be more than 60% of their gross monthly income. Disability payments may be reduced by deductible sources and disability earnings. All eligible employees must be working at least 25 hours per week to qualify for this employee benefit.

Tax-Deductible for Your Firm

In most cases, the coverage is considered a tax deduction if your Firm pays 100% of the premiums for your employees. Please consult your tax advisor for details.

Guaranteed Acceptance

Your employees will not have to submit to medical exams or answer extensive health questions to be covered.

Choice of Elimination Periods

You can choose between two elimination period options for all of your employees. This is how long your employees will have to wait to collect benefits if they become disabled:

• Option 1: 90 days
• Option 2: 180 days

Note: Generally, the longer employees wait for disability benefits to begin, the lower your Firm’s premium will be.

Maximum Period of Payment

Benefits are payable for the period during which the employee continues to meet the definition of disability up to age 65, but not less than 5 years.

Waives Premium if Disabled

You will not be required to make premium payments for an employee while he or she is receiving long term disability payments under this plan.

Additional Benefits Include:

• Child Care Benefit
• Work-Life Balance Program (EAP Program)
• Worldwide Emergency Travel Assistance Services
• HR Compliance Reference Tool

Firm Eligibility:

Coverage is available to firms who have been in business for at least two years, and have at least two employees.

When Premium is Effective and Due:

The initial premium for each plan is based on the initial rate(s) shown in the policy effective on the employer’s original plan effective date. Premium due dates are based on the premium due dates shown in the policy effective on the employer’s original plan effective date. The policyholder must send all premiums to Unum on or before their respective due date. The premium must be paid in U.S. dollars.

When Coverage Begins for Employees:

When you the employer pay 100% of the cost of coverage under a plan, your employee(s) will be covered at 12:01 a.m. on the date they are eligible for coverage.

How Unum defines disability:

An employee is disabled when Unum determines that: Your employee is limited from performing the material and substantial duties of his or her regular occupation due to sickness or injury; and your employee has a 20% or more loss in indexed monthly earnings due to the same sickness or injury. After 24 months of payments your employee is disabled when Unum determines that due to the same sickness or injury, he or she is unable to perform the duties of any gainful occupation for which he or she is reasonably fitted by education, training or experience. The loss of a professional or occupational license or certification does not, in itself, constitute disability.

Limitations:

Disabilities, due to sickness or injury, which are primarily based on self-reported symptoms, and disabilities due to mental illness have a limited pay period up to 24 months.

Exclusions:

This plan will not cover any disabilities caused by, contributed to by, or resulting from an employee’s intentionally self-inflicted injuries; active participation in a riot; loss of a professional license, occupational license or certification; commission of a crime for which you have been convicted under state or federal law; war, declared or undeclared, or any act of war; or a pre-existing condition. A Pre-existing Condition is a condition for which an employee receives treatment for 3 months or less before coverage begins. This condition will not be covered for 12 months after the effective date.