Long Term Disability Insurance


Eligibility

Faculty, Professional & Scientific and Supervisory/Confidential Merit (Non-Organized) with an appointment of 1/2 time or greater for a continuous duration of 9 months or longer.

Note: Retired employees and Pre/Post Doctoral Associates are not eligible.

 

Enrollment

 

Employees will automatically be placed in the 75%/60% plan. Employees may elect the 50% plan the first open change period following the first full year of coverage. ISU requires employees to participate in at least the 50% LTD plan.

If an employee previously elected the 50% plan option and wishes to change to the 75%/60% plan option, they may apply during the open change period. Employees are required to provide evidence of insurability by completing a Principal State of Health Questionnaire, which must be approved by Principal Financial Group.

 

Plan Options

 

75%/60% Plan:  The amount of coverage is based on your University budgeted salary. Plan pays, monthly, 75% of your first $1,000 salary plus 60% of your salary in excess of $1,000 up to a maximum of $16,417 per month.

50% Plan:  The amount of coverage is based on your University budgeted salary. Plan pays, monthly, 50% of your salary up to a maximum benefit of $16,000 per month.

 

Premiums

Employees are responsible for the premium on a post-tax basis during their first year of employment. Premium is based on annual budgeted salary. Premium is paid 100% by Iowa State University once you have completed one full year of continuous, active employment.

For Faculty, P&S, and Supervisory/confidential Merit (Non-Organized) Employees Only: If the 50% option is elected, the ISU share difference will apply to employee medical/dental share first then to one flexible spending account.

Policy Benefits

  • Participants maintain full value of all Iowa State University life insurance policies enrolled at the time of disability incurred date. Premiums are paid through a life wiaver.
  • Participants are eligible to continue on the medical and dental insurance coverage through ISU
  • Benefit payments are coordinated with Primary and Dependents Social Security and Workers’ Compensation benefits.
  • Cost of living adjustments based upon the Consumer Price Index are applied to benefits each year on the July 1 following completion of one year of continuous disability.
  • This income is fully taxable. Long-term disability income is considered lost wages.

 

Long-Term Disability Summary Plan Description