Group Disability Insurance

Group Disability Insurance  

Overview

Who Is Eligible?

MSBA members under age 60 who reside in the United States and are actively at work in their profession (at least 30 hours/week) are eligible for this coverage.

Choice of Benefit Plans
Eligible MSBA members have a choice of two benefit plans:

  • Career Plan/To Age 65 … This Plan pays benefits up to age 65 for disabilities that start prior to age 63. For disabilities starting on or after age 63, benefits will be paid up to two years.
  • Basic Plan/5 Year Plan … Accident benefits are payable up to five years for disabilities that start prior to age 60. For those that start at age 60 through 62, benefits can be paid to age 65. For disabilities starting on or after age 63, benefits will be paid up to two years. Sickness benefits are payable for a two-year maximum period.


Both plans provide coverage when you are totally or residually disabled as the result of injury or sickness that wholly and continuously prevents you from performing the material and substantial duties of your occupation.

Choice of Monthly Benefit
The maximum monthly benefit amount that can be issued is determined by your age and earnings:

Members under age 55: Up to $10,000 per month.

Members age 55 through 59: Up to $3,000 per month.

Members should elect a monthly benefit amount up to $10,000, provided that, when combined with other disability insurance you may have in force, the total does not exceed 60 percent of your average monthly earnings for the 12-month period immediately preceding your application. Income includes commissions but does not include bonuses, overtime pay, and other extra compensation. Business owners and self-employed members should consult with your plan administrator to calculate your monthly benefit amount.

Monthly benefit amounts automatically reduce on the premium due date following attainment of age 65, if the monthly benefit is greater than $2,200, it will reduce to $2,200. Any reduction in coverage will not apply if you are already on a disability claim prior to age 65.

Select Between Two Elimination Periods

You must first satisfy an elimination period by a period of continuous disability prior to receiving benefits. With this Plan, you can choose from elimination periods of 90 or 180 days. By choosing a longer elimination period, you can significantly reduce your cost.

Forms

These form(s) are in Adobe Acrobat Reader (PDF) format and are available for downloading and printing.

Tell Me More

Plan Features

Partial or Residual Disability Benefit Available

Even If You Return To Work
(Included with Career Plan)
While you are recovering from a disability, you may be eligible to receive a residual disability benefit if you return to work but are earning less than before you were disabled. Residual or Partial Disability Benefits are payable when an insured has a 20 percent or greater loss of income.

The Residual Disability must begin while you are covered under this benefit and before age 65; continue beyond the elimination period; and require the regular care of a physician. Benefits end according to the benefit period selected; when you are able to return to work (30+ hours/week); when your earnings exceed 80 percent of pre-disability earnings; or when you become totally disabled.

Rehabilitation Services
Rehabilitation services may be offered to provide disabled insureds with a rehabilitation program to assist you in returning to work. A team of vocational rehabilitation specialists will work with you, your physician, and appropriate specialists to develop a plan to conduct a review, offer suggestions, and possible funding for a return-to-work program. Participation in this program is voluntary.

Benefits Covered for Pregnancy
This plan provides benefits for any loss or disability due to normal pregnancy commencing 30 days or more after coverage becomes effective. Complications of pregnancy are covered. See your certificate of coverage or ask your plan administrator for details.

Survivor Income Continuation Benefit
If you die while receiving disability benefits and were receiving the benefits for at least 12 continuous months immediately before you died, this plan will pay your beneficiary a monthly Survivor Income Continuation Benefit for up to three months (not to exceed the maximum benefit period).

Transplant Benefit
If a total disability results from your donation of an organ for an organ transplant procedure while you are covered under the Policy, the elimination period that would be in force is waived and monthly benefits would be paid. The maximum benefit period is 12 months and is payable only once in a lifetime. Benefit payments will be subject to all of the provisions contained in the Policy except for those that are in conflict with the provisions of this transplant benefit.

Successive Periods of Disability
Recurrent disabilities due to the same or related medical causes will be treated as one continuous period of disability and applied to your maximum benefit period as one continuous period of disability. This applies unless you no longer qualified for a monthly disability benefit under this policy for at least three consecutive months.

Waiver of Premium
If you are under age 60 and are totally disabled for six continuous months while covered under the Policy, premiums becoming due for your coverage during the continuation of your benefit period for that total disability will be waived. You must continue to meet all eligibility requirements.
 

30-Day FREE Look

When you receive your Policy, read it carefully. If you’re not completely satisfied with the terms of your new insurance plan, simply return your Policy, without claim, within 30 days and your premium will be promptly refunded. No questions asked!

Optional Benefit Available:

Accidental Death & Dismemberment Coverage
Eligible members applying for disability income insurance may elect an additional tier of insurance protection, Accidental Death & Dismemberment (AD&D) insurance. AD&D insurance provides additional benefits for losses that may occur as a result of an accident. AD&D pays for loss of life, hands, sight, eyes, speech, hearing, or the combination of any of the those. Partial benefits are paid for partial losses.

Optional Accidental Death & Dismemberment is available in amounts from $10,000 to $100,000. Annual Rates: $ .35 per $1,000


Your Cost

Your insurance cost is based on your attained age when your coverage becomes effective and increases on the first premium due date after you reach a higher age bracket.

SEMIANNUAL PREMIUMS
PER $100 MONTHLY BENEFIT
MEMBER’S AGE CAREER PLAN BASIC PLAN
90–DAY WAITING PERIOD

Under 30

$5.00

$2.20

30–39

7.00

2.90

40–49

11.70

5.10

50–59

18.90

9.10

60–64

18.70

13.60

65–69*

16.60

16.60



SEMIANNUAL PREMIUMS
PER $100 MONTHLY BENEFIT
MEMBER’S AGE CAREER PLAN BASIC PLAN
180–DAY WAITING PERIOD

Under 30

$4.50

$1.80

30–39

6.40

2.40

40–49

10.60

4.20

50–59

17.10

7.50

60–64

15.40

11.20

65–69*

13.70

13.70

 

*Monthly benefits in excess of $2,200 are reduced to $2,200 upon attainment of age 65, if not disabled.

 

Additional Plans Information

Preferred Definition of Disability
Disability coverage is provided when you are totally or residually disabled as the result of injury or sickness that wholly and continuously prevents you from performing the material and substantial duties of your occupation. Your occupation means the occupation or profession in which you are regularly engaged at the time you became covered and disabled. If your occupation or profession is limited to a recognized specialty within the scope of your degree or license, the insurance company will deem your specialty to be your occupation. Your occupation means the occupation in which you are regularly engaged at the time you become disabled. If your occupation is limited to a recognized specialty, the insurance company will deem your specialty to be your occupation.

Presumptive Disability
You will be presumed totally disabled if injury or illness results in the total and irrecoverable loss (that cannot be restored or corrected by medical or surgical treatment) of any one of the following: the ability to speak; hearing in both ears; sight in both eyes; use of both hands or of both feet or of one hand and one foot.

Effective Date of Coverage
Coverage will become effective the first day of the month on or next following the month the application is approved. You must meet all eligibility requirements on the effective date, including being actively at work as defined under this coverage.

What Is Not Covered
The Policy does not cover, and we will not pay a benefit for any Loss or Disability: due to an act or accident of war or act of war, declared or undeclared, whether civil or international, or due to any substantial armed conflict between organized forces of a military nature; due to suicide or intentionally self-inflicted Injury; due to committing or attempting to commit a felony, except that this exclusion will apply only when an arrest for such activity results in a conviction (if the arrest does not result in a conviction, any benefits due and withheld shall be paid); due to your being engaged in an illegal occupation, except that this exclusion will apply only when an arrest for such activity results in conviction (if the arrest does not result in a conviction, any benefits due and withheld shall be paid); due to normal pregnancy (except that complications of pregnancy are covered). However, we will pay for any Loss or Disability due to normal pregnancy commencing 30 days or more after your Certificate Effective Date shown in your schedule; due to injury sustained during travel or flight in, or descent from any aircraft, unless as a fare-paying passenger on a commercial airline flying between established airports on a scheduled route, or a charter flight seating 15 or more people; or while you are in the armed forces of any country or international authority for a period greater than 30 days (in such event the pro rata unearned premium shall be returned to you for any period of full-time active duty for more than 30 days, provided you notify us within 12 months of entering the armed forces).

Termination
Your insurance under the Policy will cease on the first to occur of:

  1. The date the Policy is cancelled
  2. The Premium Due Date that the required premium for your coverage is not paid, subject to the Grace Period
  3. The first day of the month on or next following the date you attain the Policy Termination Age
  4. The date you cease to be a member of the Policyholder
  5. The date we or the Policyholder cancel coverage for a class of persons to which you belong
  6. The date you are no longer in the class eligible for coverage
  7. The date you retire, except due to Disability covered by the Policy or
  8. The first day of the month following a 60-day continuous period during which you cease to be Actively at Work, except due to Disability covered by the Policy or due to a layoff or leave that meets the conditions stated in a Continuation provision of the Policy


This information explains the general purpose of the insurance described but in no way changes or affects the Master Policy #1157 as actually issued. In the event of a discrepancy between this brochure and the policy, the terms of the policy apply. All benefits are subject to the terms and conditions of the policy. Policies underwritten by Unimerica Insurance Company detail exclusions, limitations, reduction of benefits and terms under which the policies may be continued in full or discontinued. Complete details are in the Certificate of Insurance issued to each insured individual and the Master Policy issued to the policyholder. This program may vary and may not be available to residents of all states.

Contact Us

Program Administrator

 Address
Mercer Consumer
PO Box 10374
Des Moines, IA 50306-8812
 Phone
1-800-501-5776
 Hours
 M-F 7:30a-5p CT
 Email
customerservice.service@mercer.com

 

Underwritten By:

 Address
Unimerica Insurance Company
PO Box 17828
Portland, ME 04112-8828

FAQs

Answers about the program, including eligibility, options, customer service and more.

  • Who is this plan underwritten by?

    This plan is underwritten by Unimerica Insurance Company, under Mercer Consumer Policy No. 1157.

  • Who is eligible for this insurance?

    MSBA members under age 60 who reside in the U.S. and are actively at work in their profession (at least 30 hours/week) are eligible.

    Note: This coverage is not available in all states at this time. Please contact your administrator for more information.

  • What are my benefit options?

    Eligible MSBA members have a choice of two benefit plans:

    • Career Plan/To Age 65 … This Plan pays benefits up to age 65 for disabilities that start prior to age 63. For disabilities starting on or after age 63, benefits will be paid for up to two years.
    • Basic Plan/5 Year Plan … Accident benefits are payable for up to five years for disabilities that start prior to age 60. For those that start at age 60 through 62, benefits can be paid to age 65. For disabilities starting on or after age 63, benefits will be paid for up to two years. Sickness benefits are payable for a two–year maximum period.


    The maximum monthly benefit amount which can be issued is determined by your age and earnings:
    Members under age 55: Up to $10,000 per month.
    Members age 55 through 59: Up to $3,000 per month.
    Members should elect a monthly benefit amount up to $10,000, provided that when combined with other disability insurance you may have in force the total does not exceed 60% of your average monthly earnings for the 12– month period immediately preceding your application. Income includes commissions, but does not include bonuses, overtime pay and other extra compensation. Business owners and self–employed members should consult with your plan administrator to calculate your monthly benefit amount.

  • What is the elimination period?

    You must first satisfy an elimination period by a period of continuous disability prior to receiving benefits. With this Plan, you can choose from elimination periods of 90 or 180 days. By choosing a longer elimination period, you can significantly reduce your cost.

  • What disabilities are covered?

    Disability coverage is provided when you are totally or residually disabled as result of injury or sickness which wholly and continuously prevents you from performing the material and substantial duties of your occupation. Your occupation means the occupation or profession in which you are regularly engaged at the time you became covered and disabled. If your occupation or profession is limited to a recognized specialty within the scope of your degree or license, the insurance company will deem your specialty to be your occupation.

  • When is the coverage effective?

    Coverage will become effective the first day of the month on or next following the month the application is approved. You must meet all eligibility requirements on the effective date including being actively at work as defined under this coverage.

  • When does the coverage end?

    Your insurance under the Policy will cease on the first to occur of:

    1. The date the Policy is cancelled;
    2. The Premium Due Date that the required premium for your coverage is not paid, subject to the Grace Period;
    3. The first day of the month on or next following the date you attain the Policy Termination Age;
    4. The date you cease to be a member of the Policyholder;
    5. The date we or the Policyholder cancel coverage for a class of persons to which you belong;
    6. The date you are no longer in class eligible for coverage;
    7. The date you retire, except due to Disability covered by the Policy; or
    8. The first day of the month following a 60 day continuous period during which you cease to be Actively at Work, except due to Disability covered by the Policy or due to a layoff or leave that meets the conditions stated in a Continuation provision of the Policy.
  • Are there any exclusions?

    The Policy does not cover, and we will not pay a benefit for any Loss or Disability: due to an act or accident of war or act of war, declared or undeclared, whether civil or international, or due to any substantial armed conflict between organized forces of a military nature; due to suicide or intentionally self–inflicted Injury; due to committing or attempting to commit a felony except that this exclusion will apply only when an arrest for such activity results in a conviction (if the arrest does not result in a conviction, then any benefits due and withheld shall be paid); due to your being engaged in an illegal occupation, except that this exclusion will apply only when an arrest for such activity results in conviction (if the arrest does not result in a conviction, then any benefits due and withheld shall be paid); due to normal pregnancy (except that Complications of Pregnancy are covered). However, we will pay for any Loss or Disability due to normal pregnancy commencing 30 days or more after your Certificate Effective Date shown in your schedule; due to injury sustained during travel or flight in, or descent from any aircraft, unless as a farepaying passenger on a commercial airline flying between established airports on a scheduled route; or a charter flight seating 15 or more people; or while you are in the armed forces of any country or international authority for a period greater than 30 days (in such event the pro rata unearned premium shall be returned to you for any period of full–time active duty for more than 30 days provided you notify us within 12 months of entering the armed forces).

  • What if I have second thoughts after I apply?

    When you become insured, you will be sent a Certificate of Insurance summarizing your benefits under the Plan. If you are not completely satisfied with the terms of your Certificate of Insurance, you may return it, without claim, within 30 days. Your coverage will be invalidated and you will be sent a full refund—no questions asked!

  • How much disability income insurance do I need?

    This depends on a number of factors including: the disability benefits that you may receive from your employer, the amount of private disability income insurance you may have in force, plus the household income that will continue during your disability.

  • What does the term Group mean?

    These are "group" plans, negotiated especially for MSBA Members and their spouses. This means that you cannot be singled out for a rate increase. Rates, although not guaranteed, can only be changed on a group basis.

Mercer's Role & Compensation

Details of Mercer disclosure of the compensation.