LONG TERM DISABILITY INSURANCE (LTD)
How can I apply for Long Term Disability (LTD)?
The Benefits Office has the forms available. There are forms for both you and your physician to complete. Once the forms are completed, they should be returned to the Benefits Office, 120-40 USB. The Benefits office will forward the documentation to Principal Life Insurance. Call 335-2680 to obtain the forms or if you have other questions. You can also find information at: http://www.uiowa.edu/hr/benefits/insurance/ltd.html
When does long-term disability begin paying income to me?
Upon approval, LTD benefits will begin approximately 30 days following the 90 working day waiting period or the exhaustion of sick leave, whichever is greater. The waiting period begins the day after your last day at work or when you reduce your hours. Principal Life Insurance will send you a letter notifying you of approval and the exact date of your first payment.
How long does it take for a claim to be reviewed?
It can take from 6 to 12 weeks for a Principal Life Insurance claims analyst to review the claim for a decision.
Who decides if the claim is approved or denied?
Principal Life Insurance will review the claim. The decision is based on whether or not you meet the definition of disability as defined in the contract The University of Iowa has with Principal. Basically, disability is defined as the inability to perform the duties of your normal job as a result of a sickness or injury.
What if I don’t have enough vacation or sick leave to stay in pay status for the 90 working day waiting period?
You may apply to participate in the Catastrophic Leave program. This program allows staff and faculty who earn vacation to donate vacation to you to be used as sick leave time. You may use the catastrophic leave donations pending a decision on the disability benefits. More information can be found at http://www.uiowa.edu/hr/benefits/catastrophic/index.html
What happens to my group and supplemental benefits while I am on disability?
Principal will continue your life insurance if you are under age 70. If you are over age 70 at the time of LTD application, however, there will be no life insurance benefit. If you are carrying AD and D coverage at the time of your disability, this coverage will also remain in place at no cost to you. Principal will continue contributions to TIAA/CREF at the same level as your employment contributions. You will be allowed to continue in The University’s group for health and dental insurance by paying the full rate for the plan(s).
Is my disability insurance income taxable income?
If your disability premium was deducted from your monthly pay on a pretax basis then the disability income is 100% taxable. If your disability premium was deducted from your monthly pay on an after tax basis then some or all of your disability income may be tax-free.
Do I need to apply for Social Security Disability Income (SSDI) Benefits?
Principal does not automatically require you to apply for SSDI. You will be required in the application process to sign an agreement to apply for SSDI when Principal requests it, however. Principal will reduce its payment to you by the Social Security Disability Income payment. In most cases SSDI is not taxable. Medicare will become available to you two years after your SSDI approval date.
Can I work and receive disability income?
Yes. The University disability plan offers a partial disability option. If you are unable to earn more than 80% of your income prior to disability due to illness or an injury, you may qualify to receive partial disability income. Once your claim is approved by Principal, the Benefits Office will send Principal your monthly earning statements. Principal then calculates the income owed to you. If you work for another employer, Principal will request copies of your earning statements from you directly.
How long may I remain on disability insurance?
If you continue to meet the definition of disability and begin receiving disability benefits before age 61, disability benefits will be payable until the June 30th after your 65th birthday. If benefits begin after age 61 but before age 69, benefits will continue for 5 years, or the June 30th following your 70th birthday, whichever comes first, and after age 69, for 12 months.
How much income can I expect to receive from disability?
Your years of service, your salary, and the program in which are participating determine the amount of income you would receive. Please contact the Benefits Office for your benefit amount.