Your earning power is the key to your family's financial well-being.
Financial planners often recommend income protection insurance, sometimes called disability insurance, as a key element in your overall asset protection program. Your earning power is probably the most important resource for your family, and you can help protect it simply and inexpensively.
Who would your family turn to if you weren't able to work due to an illness, injury or sickness? Where would the money come from to pay the mortgage, taxes, car loans, college tuition, and other expenses?
What are the chances of being disabled?
More than you may imagine and it's not a risk you should ignore, especially when The Trust's Income Protection insurance plans underwritten by Liberty Life Assurance Company of Boston, a Lincoln Financial Group company, can help replace a portion of your income and provide the peace of mind you need at affordable group rates!
Why Trust Income Protection insurance?
The plan is designed for psychologists, by psychologists who worked with Liberty Life and takes into account the commitment it takes to have a career in psychology and the duties associated with the practice of your profession. All plans may be continued for as long as you work at least 20 hours per week on a regular basis. Benefits are payable if you can't perform the duties of "your occupation."
Trust Income Protection plans are flexible and responsive!
- Monthly benefits of up to $10,000.
- Choice of benefit payment periods (5-year plan or to age 65).
- Choice of benefit waiting periods - 28, 90 and 180 days.
- Residual benefits to ease your return to work.
- Guaranteed Insurability Option (GIO)* guarantees that you can purchase additional monthly income protection as your earnings increase without medical evidence of insurability.
- Benefit Booster** prevents cost of living increases from eroding the purchasing power of your protection.
* Each May 1, you may purchase up to 10% of the initial benefit selected provided you are actively at work and have not been hospitalized in the 6 months prior to May 1. The maximum amount of increase is
limited to the maximum benefit of the program.
** The maximum accumulated benefit under this option will be 200% of the monthly benefit you have selected.
How much Income Protection do I really need?
Under this plan, you may apply for coverage that would replace 60% of your annual earnings, minus any business expenses/overhead if self-employed. When selecting a level of coverage, you should consider how much income you need to cover the basic needs of the family such as income for mortgage payments or rent, insurance premiums, food, clothing, automobile operation and maintenance, installment payments, utilities, real estate and other taxes, and children's school expenses. It's important to remember that premiums paid with personal after-tax dollars, in most cases, provide federally tax-free benefits. Therefore, a 60% replacement ratio plan may replace up to 80%-90% of your net spendable income depending upon your tax situation. Note: If you are self-employed and wish to protect your business expenses, please check out our Office Overhead Disability program.
How long do I wait before the plan benefits begin?
You can choose a benefit waiting period to suit your individual needs. Generally, the longer you can wait for benefits to begin after becoming disabled, the lower the cost of the plan. A waiting period may be viewed like a deductible on other insurance you own. Benefit waiting periods of 28, 90 and 180 days are available for LifeStyle-5 and LifeStyle-65 plans.
What are my choices?
Trust Income Protection insurance can help replace a portion of your lost earnings in the event of total disability resulting from injury, accident or sickness. Subject to certain limits discussed in the brochure and your certificate, this insurance will pay you a benefit if you are prevented from performing the duties of your occupation (LifeStyle Plans Only). It's important to remember that the Trustees, comprised of insurance professionals who are experts in the field, and psychologists who are engaged in your profession, actually helped design these plans.
The LifeStyle-5 Plan provides disability benefits for a period of up to five years or age 62, whichever comes first, for disabilities beginning before age 60. For disabilities beginning between ages 60-65, benefits continue for two years or to age 65, whichever comes first. For disabilities beginning after age 65, benefits will be paid for one year.
The LifeStyle-65 Plan provides disability benefits which begin prior to age 60, benefits are paid until age 65. For disabilities beginning between the ages of 60-65, benefits are paid for two years or to age 65 whichever comes first. For disabilities beginning after age 65, benefits will be paid for one year.
LifeStyle-65 Plus Plan
The LifeStyle-65 Plus Plan offers you the opportunity to replace as much as 67% of your taxable income rather than a 60% replacement. The higher replacement ratio provides funds that will allow a continuation of contributions to your retirement/savings plan.
It's important to remember that even a long term disability may not affect your longevity, and that a continuation of retirement plan funding may be critical for you and your spouse. This plan enables you to replace a portion of your current income and continue to set funds aside for your future retirement. When submitting an application, you will be required to include proof that you are contributing to a retirement/savings plan on a regular basis.
The Economizer-65 Plan is a lower cost alternative to the LifeStyle programs. The duration of disability benefits is the same as the LifeStyle-65 Plan. For disabilities which begin prior to age 60, benefits are paid until age 65. For disabilities beginning between the ages of 60–65, benefits are paid for two years or to age 65, whichever comes first. For disabilities beginning after age 65, benefits will be paid for one year.
The difference between the Economizer-65 Plan and other Trust endorsed plans of Income Protection (Disability) insurance is that the definition of disability becomes more restrictive after the first two years of benefit payments under this plan.
- For the first 27 months, you are considered totally disabled if you are completely unable, due to sickness or bodily injury, to perform the duties of your normal occupation and are not performing any other occupation.
- After the first 27 months, you would be considered totally disabled and benefit eligible if you are unable due to sickness or bodily injury to perform any occupation for which you are reasonably suited by education, training or experience.
Other Trust Income Protection (Disability) plans contain a definition of disability commonly referred to as a “your own occupation” definition for the entire episode of disability (definition A above).
The Economizer Plan is offered with a 90-day waiting period, without Benefit Booster and Guaranteed Insurability options. It is about 25% less costly than our LifeStyle-65 Plan. The Economizer Income Protection (Disability) policy is designed for those who wish to maintain a basic level of Income Protection insurance.
Additional plan features offer comprehensive protection!
If you elect Benefit Booster optional coverage, your benefits will increase once each year on the date disability payments began by a maximum of 3% or the annual percentage increase in the Consumer Price Index, whichever is less. You may add this feature to help offset the impact of inflation on the
purchasing power of your benefit.
Guaranteed Insurability Option (GIO) is included in all LifeStyle plans and allows the purchase of additional Income Protection Insurance each year without medical evidence of insurability. As your income grows, your needs change and your Trust Income Protection insurance can be increased regardless of your medical condition. Increases up to 10% rounded to the nearest $100 of your initial benefit may be purchased by opting to increase the protection each May 1. To qualify you must request an increase each year during the month of April, must be actively at work, not have been hospitalized in the prior 6 months, and provide income verification.
For eligible claimants, this benefit provision encourages a person receiving benefits to gradually return to work without losing disability benefits. If, immediately following a period of total disability which has lasted 6 months or longer, you return to work but your earnings are less than 75% of pre-disability average earnings, the plan will pay an amount equal to the percentage of your lost earnings applied to the disability benefit for the next 12 months. For instance, if
you were receiving a $5,000 monthly benefit and your post disability income derived from employment is 75% of your income prior to disability, the plan will pay $1,250 a month for the next 12 months (25% of $5,000).
All Trust Income Protection plans now include a three month survivor option. If you should die while receiving total disability benefits, the plan will pay your survivors a sum equal to 3 monthly benefits.
The benefit will be paid to your surviving spouse and children, or otherwise to the executor or administrator of your estate.
Liberty Life is a leader in providing rehabilitation resources to disabled insureds to help them get back to work. Liberty Life's Rehabilitation Specialists review case histories to select those individuals who they feel would benefit from rehabilitation efforts. These resources are free of charge and participation is voluntary. Participation in these programs will not cause disability benefits to terminate.
Successive Periods of Disability Provision
This provision recognizes that if an insured suffers a period of successive disability, from the same or related cause, benefit payments will begin again immediately without the imposition of a new benefit waiting period. Successive periods of disability due to the same or related causes will be considered one period of disability unless they are separated by the insureds return to active work on a full time basis for at least 6 months or coverage terminates.
Waiver of Premium
In the event of total disability for six consecutive months, premiums due are waived until the next quarterly payment date which follows cessation of disability benefits.
Cost-Effective Group Rates
A 40-year old practitioner can replace $5,000 of monthly earnings for just $616 a year! Unlike other Income Protection plans, rates are the same for women and men.
Plan Provisions, Exclusions and Limitations
- Benefits are payable only for periods of disability for which you are under the care of a fully licensed physician and meet the definition of total disability in the policy.
- Benefits will not be paid for disability caused by pre-existing conditions which existed prior to being insured by this insurance for which treatment, including medication or prescriptions, was rendered or charges were incurred within six months before the effective date of insurance. However, pre-existing conditions are covered after six months (one year for mental illness or emotional maladjustment) has elapsed where no treatment has been rendered or charges incurred for such illness (this includes medication or prescriptions).
- The maximum length of time for which benefits are payable for any one period of disability varies according to age at the time disability begins and the plan you select.
- Benefits for a disability resulting from alcohol, drug abuse, or mental illness will not be paid for more than 24 months. Benefits will be paid for disabilities resulting from these conditions only if you enter and remain active in a program of rehabilitation designed to minimize the condition and lead to ongoing recovery.
Benefits will not be paid for disabilities due to:
- War or act of war (declared or undeclared);
- Pregnancy, unless the disability is due to complicated pregnancy;
- Intentionally self-inflicted injuries while sane or insane;
- Drugs that are voluntarily taken, ingested or injected, unless prescribed or administered by a physician;
- Active participation in a riot or committing or attempting to commit an indictable offense.
For LifeStyle-65 and Economizer Plans
If you are totally disabled, you will receive a monthly benefit subject to the waiting period selected, reduced by Social Security disability benefits; and disability benefits you receive under any state or federal law (but not reduced by individual insurance you may also own) so that your total disability income benefits do not exceed 70% of earnings prior to receiving disability payments.
Termination of Coverage
Your Income Protection insurance will terminate on the earliest of the following dates:
- The date the master policy held by the Trustees is terminated;
- The date you fail to make any agreed payment of premium within the 31-day grace period;
- The date you cease to be gainfully employed on a regular basis of at least 20 hours per week; except during an approved period of disability;
- The date you become a member of the armed services of any country.
Psychologists who are eligible to enroll in any programs of Income Protection insurance described must submit evidence of insurability when making application. The insurance will not become effective until the first day of the calendar month following the date that Liberty Life Assurance Company of Boston determines that such evidence is satisfactory.
Who may apply for Trust Income Protection insurance? You are eligible to apply if you are a psychologist, are under age 65, and reside in the United States.
The annual premium is due on each May 1. Quarterly premiums are due on each May 1, August 1, November 1, and February 1. In the event you enter the plan on any date other than on the first day of a premium due date, the premium will be prorated to the next quarterly or annual premium due date. Premiums are determined by the policyholder's age on the date of issue and by the policyholder's age as of May 1 on renewal.
When you have a claim
Detailed information regarding claims procedures is issued with each new certificate of insurance. Promptly report all claims to Liberty Life's office in Dover, New Hampshire.
Administrator: Trust Group Insurance Plans
Liberty Life Assurance Company of Boston
P.O. Box 1525
Dover, NH 03821-1525
If you have any questions, please call (844) 228-2480.
This plan is underwritten and administered by Liberty Life Assurance Company of Boston, a member of the Lincoln Financial Group. It is the only Income Protection program endorsed by The Trust and has been in effect for 40 years. A group Income Protection policy has been issued to the Trustees of The Trust. Each participating member receives a certificate of insurance outlining the benefits to which one is entitled under the policy.
The descriptions here are necessarily brief and are subject to provisions that can only be expressed completely in the certificates of insurance which are available upon request and which will be sent to you when coverage begins.