All About the Special LTD Opportunity

During Open Enrollment for 2019 benefits, Human Resources is pleased to offer eligible employees a one-time opportunity to enroll in or increase coverage in Long Term Disability (LTD) insurance without providing evidence of insurability (proof of good health). This means no forms from a physician are required to enroll.

What is it?

An LTD insurance policy protects you from loss of income in the event that you are unable to work due to an illness, injury, or accident for a long period of time. IU’s LTD plan replaces up to 60 percent of your base salary, to a maximum of $10,000 per month (less Social Security, income, or similar benefits from other sources). With continuous disability, the plan may pay benefits up to age 65 (or to a later age if disability occurs after age 60).

The premiums for LTD coverage are entirely paid by the employee and the cost for the insurance is based on the enrollee’s age, salary, and selected coverage option.

Seven things the LTD plan offers:

  • A Special Opportunity – The special, one-time enrollment offered during this year’s Open Enrollment does NOT require you to provide evidence of insurability (proof of good health).
  • Annuity Contribution Benefit – After 24 months of continuous disability, this optional coverage pays contributions equal to 10 percent of the covered employee’s base salary to a retirement annuity fund.
  • Survivor Benefit – An amount equal to three times the monthly benefit is paid to surviving dependents in the event of the disabled employee’s death.
  • Cost of Living Adjustment – This provides a three percent annual cost of living adjustment increase in benefits after receiving benefit payment for the required period of time.
  • Rehabilitation Services – Individuals with a disability may qualify for vocational testing, job prep, career counseling, retraining, or workplace modification.
  • Waiver of Premium – While LTD benefits are payable, payment of premium for your LTD insurance will be waived.
  • Partial Disability – Employees not entirely off of work may be eligible to receive partial disability, where deductible income will offset the disability benefit amount paid.

Learn more at our LTD page.

Why this opportunity is different

Normally, employees who wish to enroll in LTD outside of their 30-day new hire enrollment period must provide evidence of insurability. Additionally, employees already enrolled in LTD who wish to increase their level of coverage are also required to provide proof of good health for review and approval. Please note: Employees who have previously been denied coverage by the LTD vendor, The Standard, are not eligible to enroll during this enrollment period.

Outside of this Open Enrollment period, evidence of insurability will be required if you:

  • wish to enroll in the future; or
  • are electing a new coverage option which provides a shorter benefit waiting period; or
  • are electing a new coverage option which adds the Annuity Contribution Benefit; or
  • previously terminated your Long Term Disability insurance and would like to re-elect coverage.

If you’re already enrolled in this plan and choose not to change your enrollment, your coverage will remain the same. Any enrollment or election changes submitted during this year’s Open Enrollment period will be effective January 1, 2019.

If you have questions about this special opportunity, just ask. Call or email askHR at (812) 856-1234 or