Group Disability Income

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Product

A group disability income policy pays a monthly income benefit if you become disabled. A group disability policy is typically issued to the plan sponsor which can be the policyholder’s employer, union or other association.

A group disability policy is a monthly income benefit protected under Assuris protection.

Assuris Protection

If the life and health insurance company holding your group disability policy fails, and you are not receiving payments at the date of failure, Assuris will ensure that the coverage under your group disability income policy will continue until the earlier of:

  • The next renewal date for your group contract, or
  • Six months from the date of failure of the member company

If you are receiving monthly payments at the date of failure, Assuris will seek to transfer your policy to a solvent company where you will continue to receive your monthly payments.

Assuris guarantees that you will retain up to $5,000/month or 90% of your monthly income benefit, whichever is higher.

Note: Assuris protection is applied to pre-tax amounts.

Example 1

Monthly income benefit

$4,500
/month

Original
benefit amount

Since your monthly income benefit is less than $5,000/month, you will retain your full benefit amount.

$4,500
/month
Protected benefit amount

Example 2

Monthly income benefit

$7,500
/month

Original
benefit amount

Since your monthly income benefit is more than $5,000/month, you will retain 90% of your benefit amount.

$6,750
/month
($7,500 × 90%)
Adjusted benefit amount

Questions and Answers

1. What happens if I have increasing disability benefits?

If your disability benefits increase under the terms of the policy, for example by inflation adjustments, it will be protected based on the monthly income at the date of failure of the member life and health insurance company holding your policy. After the date of failure, your monthly income will increase based on the protected amount.

2. What if I receive quarterly, semi-annual or annual benefit payments?

For quarterly benefit payments, the Assuris protection is up to $15,000 quarterly or 90% of the promised quarterly payments, whichever is higher.

For semi-annual benefit payments, the Assuris protection is up to $30,000/semi-annually or 90% of the promised semi-annual payments, whichever is higher.

For annual benefit payments, the Assuris protection is up to $60,000 annually or 90% of the promised annual payments, whichever is higher.