Long-Term Disability Insurance
2010 Group Insurance Update
2010 Group Insurance Quick Reference (PDF)
UNUM is the carrier for Long-Term Disability (LTD) insurance.
Enrollment Timeframe
New employees must enroll within 60 days of their date of hire to avoid medical underwriting for LTD insurance. Please contact the Unitarian Universalist Group Insurance Plan (UUGIP) Administrator (groupinsurance@uua.org) if you want to apply and have been employed for longer than 60 days.
Enrollment Procedures
Participants should complete an LTD enrollment form (PDF) and return it to the UUGIP Administrator (groupinsurance@uua.org).
Benefit Information
Long-term disability insurance is meant to replace income lost by being unable to work for longer than 90 days due to disease or injury. Benefits in the Unitarian Universalist Association (UUA) plan now provide:
- 66.67% of salary for the insured person (salary plus housing allowance in the case of ordained clergy)
- Up to 30 months of $600/month to pay towards your health insurance premium if you are participating in your employer's health plans, including the UUA Health Plan (PDF).
- A Work/Life Balance Employee Assistance Program and Worldwide Emergency Travel Assistance Services are also made available to participants in the LTD insurance at no additional charge.
LTD benefits are paid for:
- Two years to disabled persons who cannot work in their primary occupation, until age 65 for persons whose disability prevents their earning 80 percent of your pre-disability income in any profession.
- 24 months to persons disabled due to mental health disorders. After age 65, the maximum payment period declines until benefits are for one year at age 69 or older.
Most employer/congregations “self-insure” the first 90 days of long-term disability of their ordained ministers.
Premiums
The annual premium for this long-term disability coverage is 1% of the amount insured; divide that amount by 12 to obtain the monthly premium.
To calculate the per-paycheck cost for this coverage, complete the calculation below:
Annual Salary divided by 100 = ____________ x $1.00 = Annual Cost.
Divide Annual Cost by # paychecks/year = Cost per Paycheck (final cost may vary slightly due to rounding).
Example: The annual LTD premium for a minister with a combined salary and housing allowance of $57,000 will be $570. Divide the annual cost by 12 to obtain the monthly premium—in this example, $47.50/month.
The premium for a staff member with earnings of $28,000 will be $280 per year, divided by 12 equals $23.33 per month.
Paying for Coverage
If long-term disability premiums are paid out of after-tax earnings, any benefits received are exempt from federal income tax. If the premiums are paid by the congregation the tax treatment of the benefits may be different. Our office can help explain the available options.
For more information contact groupinsurance@uua.org.
Last updated on Thursday, March 18, 2010.
