Long Term Disability Insurance

On this page: Plan Provisions | Eligibility | Plan Contributions | Calculate Monthly Premium | Coverage Period

The Standard has informed Indiana University that Long Term Disability (LTD) premiums will increase effective March 1, 2012. This increase is a result of claims exceeding premiums paid over the past couple of years. Go to the Premium Estimator to automatically calculate your new premium.

Plan Provisions

Reduced Premiums and Enhancements to LTD Insurance

Negotiations with The Standard, underwriter of the IU LTD plan, have resulted in a reduction of premiums and several enhancements that become effective March 1, 2007.

Reduced Premiums

The university’s LTD plan will have a 10 percent overall reduction in premiums effective March 1, 2007.

One-time Opportunity to Add Retirement Protection Benefit

Current enrollees who do not have the Retirement Protection Benefit can add this benefit without showing proof of eligibility. This opportunity is only available between March 1, 2007, and April 30, 2007. Participants will receive a letter and change form describing this option.

New Enrollees Can Enroll at any Time

Full-time employees may enroll at any time after their initial eligibility period (60 days after first becoming eligible) by showing proof of insurability. Employees not already enrolled in LTD insurance may want to consider enrolling now.
The two-step process to enroll and all necessary forms are at the Benefits Change Connection.

Indiana University's Long Term Disability Plan is an income protection plan for covered employees who become disabled due to an illness or accident.

Pays a regular income when an enrolled employee is totally disabled and cannot work.
Replaces up to 60 percent of salary, to a maximum of $10,000 per month, less Social Security, Worker's Compensation, or similar benefits.
Pays benefits as long as total disability continues, until age 65 (or to a later age if disability occurs after age 60).
Allows the eligible participant to choose if benefits will begin after three months (90 days) or after six months (180 days) of disability.
Offers an optional Retirement Protection Benefit (Annuity Contribution Benefit)--which pays to a retirement annuity fund--contributions equal to 10 percent of the covered employee's base salary. For enrollees prior to July 1, 1999, this benefit provision equals 12 percent of base salary.
Provides a 3 percent annual Cost of Living Adjustment increase in benefits after receiving benefit payments for the required period of time.
An Assisted Living Benefit provides extra income replacement for severely disabled individuals.
Pays a survivor benefit of 3 times the monthly benefit without reductions, as long as the participant had a continuous disability for 180 days.
Provides benefits for Mental Illnesses, for up to 24 months.

Eligibility

All Indiana University full-time appointed employees are eligible for the Long Term Disability Plan.
Initiation of Plan participation must be made within 30 days after becoming an eligible employee, by submitting the appropriate paperwork to the campus Human Resources Office.
Application for enrollment or change in coverage option after the first 30 days of eligibility must be accompanied by a Medical History Statement.

Plan Contributions

The total premium for LTD coverage is paid by the employee.
The cost for this disability insurance varies with the enrollee's age, salary, and selected option

Option A - 180 day waiting period
Option B - 90 day waiting period
Option C - 180 day waiting period with the Annuity Contribution Benefit
Option D - 90 day waiting period with the Annuity Contribution Benefit

Premiums are automatically deducted from the employee's paycheck
Premium rates are reviewed annually, and information about any changes is available from the campus Human Resources Office

Calculate Monthly Premium

Go to the Premium Estimator to have the monthly amount automatically calculated.
- Estimate premiums effective March 1, 2012
- Estimate premiums prior to March 1, 2012
The premium automatically changes based on employee's age and salary.

Coverage Period

Coverage begins when an eligible employee has completed the appropriate paperwork to the campus Human Resources Office within the first 30 days of eligibility; or
If after the first 30 days, upon the approval date after review of the employee’s Medical History Statement by Standard Insurance Company.
Long Term Disability Insurance will not begin, even after applications have been submitted for an eligible employee, until the first day the employee is Actively At Work.
Coverage under the LTD Plan continues as long as the eligible employee continues to have premium payments made directly from salary.
If an employee ceases to be eligible for coverage under the Indiana University Long Term Disability Plan, insurance under a conversion policy may be available.

Benefit plan information on these web pages is in a summary format and is not intended to replace actual plan documents. Indiana University reserves the right to amend or terminate all or any part of any benefit plan.