Insurance

While most Americans insure their lives and material assets, like their homes, cars, etc., many overlook the need to protect one their most valuable assets – their ability to work. Fewer than 20% of all working people own a personal disability policy that insures their income against the threat of an unexpected accident or illness. Yet, insurance claim studies indicate that the odds of becoming disabled for 90 days or longer are much greater than dying during one’s work years.

At age 32 disability risk is 3.5 times greater than death. At age 42 disability risk is 3 times greater than death. At age 52 disability risk is two times greater than death.

In March of 2009, RBI began offering three new LTD plans (as listed below).  These plans offer multiple features, multiple pricing and provides each church the flexibility to create employee classes in order to offer disability plan variety at the local level.  Churches may retain their current (grandfathered) LTD plan at the 2008 rate.  However, any new enrollment will require the church to choose a new plan for all of its employees.  Each of the new plans (Employer Paid Enhanced, Employer Paid Basic, and Employee Paid Voluntary) will be billed at a lower rate than the Grandfathered Plan (see schedule below).  The plans may be offered to or provided for all full time (30 hours per week or more) ministers, missionaries and lay employees of a PCA church, committee, agency or other related entity.

Below is a summary of plan provisions.  Effective April 1, 2010, the Employer Paid Enhanced plan option covers claims as "own occupation" to Social Security Normal Retirement Age.  Refer to the plan cetificate for more information.

Other provisions apply.   Select a link below for an enrollment form or an informational flier.

PCA Group LTD Employer Paid Enrollment Kit

PCA Group LTD Employee Paid (Voluntary) Enrollment Form

PCA Long Term Disability Informational Flier

Benefit % and Maximum Benefit
The percent (XX%) of monthly earnings received to maximum benefit of compensation ($XXXX) per month for duration of the benefit.  Your monthly payment may be reduced by deductible sources of income and disability earnings.  Some disabilities may not be covered or may have limited coverage under this plan.  Return to table.

Pre-Ex
Pre-existing condition limitation.  Number of months "look back" and the number of months forward until pre-ex no longer applies.  Pre-ex terms vary in each plan.  You have a pre-existing condition if:

• you received medical treatment, consultation, care or services including diagnostic measures, or took prescribed drugs or medicines, for example, in the 3 months just prior to your effective date of coverage and would not be covered for 12 or for 24 months, depending on the plan selected. Return to table.

Employee Contributions
The amount the employee must pay for certain benefits.  This can range from 0% (for employer paid plans) to the employee having to pay 100% of the premium or other amounts specified in the contract.  These contributions are payroll deducted. Return to table.

Minimum Participation
In order to be eligible for group coverage, the employer must also have a minimum number of employees who will be covered.  This helps ensure an adequate spread of risk across the insured group.  The minimum number of lives required for a "group" varies by product options.  In the case of LTD, all percentages listed are the amount of employees by employment classification type.  Organizations may have more than one class type. Return to table.

COLA - Cost of Living Adjustment
Whether or not the plan includes annual cost of living adjustments to those receiving disability benefits. Return to table.

COLA Duration
How long COLA adjustments will continue (if applicable). Return to table.

RIP - Retirement Income Protection
Whether or not the plan purchased includes this provision and if so, what percent of monthly compensation is included in this provision.  If this provision is included in your plan, and if you are receiving disability payments, Unum will pay your Employer an extra benefit to be deposited into the PCA Retirement Plan on your behalf. Return to table.

RIP Maximum
The RIP provision provides for a monthly benefit amount of 9% of Basic Monthly Earnings to a maximum of $2,500 per month. Return to table.

WIB - Work Incentive Benefit
How much will Unum pay you if you are disabled AND working?

Unum will send you the monthly payment if you are disabled and your monthly disability earnings, if any, are less than 20% of your indexed monthly earnings, due to the same sickness or injury.

If you are disabled and your monthly disability earnings are from 20% through 80% of your indexed monthly earnings, due to the same sickness or injury, Unum will figure your payment as follows:

During the first 24 months of payments, while working, your monthly payment will not be reduced as long as disability earnings plus the gross disability payment does not exceed 100% of indexed monthly earnings.

1. Add your monthly disability earnings to your gross disability payment.

2. Compare the answer in Item 1 to your indexed monthly earnings.

If the answer from Item 1 is less than or equal to 100% of your indexed monthly earnings, Unum will not further reduce your monthly payment.

If the answer from Item 1 is more than 100% of your indexed monthly earnings, Unum will subtract the amount over 100% from your monthly payment. Return to table.

Definition of Gainful Occupation
After a person has been disabled for a period of time, many definitions of disability will change to also consider what other occupations an individual might be capable of performing.  Unum uses the term "gainful occupation" to help define this intent.  To be considered "gainful" another occupation must be reasonable for the individual based on his/her education, training and experience.  As shown here, the definition of "gainful" also takes into accouint what the indivudual might be expected to earn in that other occupation compared to their regular occupation.  Notice that the "gainful occupation" test differs depending on whether or not the person is working (to encourage return to work).

Gainful occupation means an occupation that is or can be expected provide the insured with an income within 12 months of their return to work that exceeds:
•80% of their indexed monthly earnings (if working); or
•60% of their indexed monthly earnings (if not working). Return to table.

Rate per $100 of Compensation
The cost of the plan per $100 of, in most cases, annual salary.  For example, if a non pastor has an annual salary of $50,000, and the employee was covered on the Employer Paid Enhanced Plan, the rate would be:

$50,000 / 12 = $4166.67 / $100 - 41.67 x $0.51 - $21.25 per month.

Also as an example, if a pastor has an annual called salary of $60,000, of which $40,000 is taxable income and $20,000 is non-taxable housing allowance, the rate would be:

$60,000 / 12 = $5000 / $100 = 50 x $0.51 = $25.50 per month. Return to table.

Worldwide Emergency Assistance Services for Travelers with LTD Coverage

Would you know whom to call if you needed help while traveling? When you enroll for LTD coverage, you’ll also have access to AssistAmerica services which will give you extra peace of mind whenever you travel more than 100 miles from your legal residence. This service offers you and your dependents medical, travel, legal and financial assistance services 24 hours a day, 365 days a year.