Long-Term Disability Insurance

Employees will be automatically enrolled in the long-term disability plan after 12 months of service. Coverage is effective the first of the month coinciding with or following the one-year anniversary date. 

Employees have the option to apply for the LTD coverage for the first year of employment during their initial benefits enrollment 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. Once approved, the employee pays the premium for the first year of coverage. After one year, ISU will pay the premium 100%.  

The amount of coverage is based on your university budgeted salary. Plan pays monthly, 63% of your salary up to a maximum of $10,000 per month.

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.

• 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 waiver.
• 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