Guarantee Issue Long Term Disability Insurance

Guarantee Issue Group Long Term Disability Income Protection Insurance from Aetna

  • Guarantee Issue LTD Insurance for Every P.A.C.E. Division Manager

    • Imagine what would happen if you were unable to work in your own occupation because of a disabling injury or illness. You and your family could face financial ruin. A guaranteed source of income during long periods of disability is an absolute necessity for every Contract Professional. This is the purpose of LTD insurance.

    • Unfortunately, very few Contract Professionals can qualify for LTD insurance, let alone afford it. And purchasing good, affordable, LTD insurance on the street is risky, if not impossible, especially if you have one or more preexisting medical conditions. A history of mental illness, even marriage counseling, back problems, high blood pressure, diabetes, tobacco usage, and a host of relatively minor conditions can rule out any hope of qualifying for individual LTD coverage.

     

  • Universal Coverage for Full Time P.A.C.E. Employees

    • P.A.C.E. Long Term Disability Income Protection Insurance is provided to every full-time P.A.C.E. employee with no medical underwriting. You cannot be denied individual coverage for any reason. Guarantee issue is possible because the plan has 100% participation, thereby eliminating any opportunity for adverse selection.

    • The benefit payout is 60% of gross wage up to $10,000 per month, and payments begin just 90 days following the onset of a qualifying disability.

    • Because the payout is tax-free you get to keep the entire payout instead of having to give up nearly one-half as taxes, which is the case with traditional employer-paid plans.

    • P.A.C.E. Division Managers may not opt out of coverage because doing so would disqualify the guarantee-issue feature for all P.A.C.E. Division Managers.

    • Long Term Disability Income Protection Insurance is the most important insurance coverage an Independent Professional can have, yet it can be virtually impossible to purchase “on the street” at reasonable rates, if at all. The P.A.C.E. Long Term Disability plan is a tremendously valuable benefit to protect your income in the event you become disabled and cannot work at your own occupation.

     

  • Summary of LTD Benefits

    • Eligibility: Full time employees (32+ hours per week)

    • Elimination Period: 90 Days

    • Benefit Percentage: 60% of gross wage.

    • Maximum Monthly Benefit: Benefit $10,000.

    • Minimum Monthly Benefit: 10% gross/$100

    • Maximum Benefit Duration: Social Security Normal Retirement Age (SSNRA).

    • Definition of Disability: See plan documents.

    • Own Occupation Period: 24 months

    • Survivor Benefit: 3 months

    • Conversion: None

    • Mandatory Participation: Yes

    • Division Payment: $0.00 (zero). Payment is made with after-tax dollars from your gross wage.

    • Paycheck Deduction: 0.20/$100 of projected gross wage up to a maximum annual gross wage of $200,000. Because the employee pays the insurance premium as a payroll deduction with after-tax dollars the benefit payout is tax-free.

    • Maximum Monthly Premium: $33.33 per month

    • Representative Values: The table below gives representative values for monthly premiums and monthly benefits:
 
Monthly
Gross Wage
Monthly
Premium
Tax-free
Monthly Benefit
 
$16,667
or more
$33.33
$10,000
 
$15,000

$30.00
$9,000
 
$10,000
$20.00
$6,000
 
$ 7,500
$15.00
$4,500
 
$ 5,000
$10.00
$3,000
 
$ 2,500
$05.00
$1,500
    • Rate Guarantee: 2 years

    • Waiver of Premium: Included

    • Zero Day Residual: 20% income loss during Elimination Period and own occupation period; 20% loss during any occupational period.

    • Return to Work Benefit: Up to 100% pre-disability earnings including employment income for first 12 months.

    • Rehabilitation Services: Mandatory

    • Maternity Coverage: Included

    • Mental/Nervous: 24 month outpatient limitation

    • Alcohol/Drug: 24 month outpatient limitation

    • Separate Periods of Disability: Included

    • Social Security Offsets: Full Family

    • Integration Method: Direct

    • Social Security Assistance: Included

    • Occupation and Non-occupation coverage: Included, not in lieu of workers compensation.

    • Preexisting Exclusion: 3/0/12

    • Legal Reference Programs: Provide access to a variety of free and discounted legal services and information including, downloadable legal forms, discounted will preparation services and legal consultations.

    • Exclusions: Refer to plan documents for limitations and exclusions.

    • Wage Basis: The premium deducted from your payroll is based on your gross wages during the previous two quarters. If we do not have two full quarters of data we will use one quarter. If we do not have one full quarter of data we will base the premium on 65% of your Division’s projected monthly revenues.

    • Adjustment of Wage Basis: Premium amounts will be readjusted quarterly on January 1, April 1, July 1, and October 1 to reflect the previous two quarters’ gross wages. At the beginning of each quarter we will send you by e-mail an accounting of the wage basis for your premium and the premium amount that P.A.C.E. will deduct monthly from your payroll.

    • At P.A.C.E. our goal has always been to provide the best benefits package available to ANY Independent Professional ANYWHERE in the USA. We hope you will agree that the relatively small monthly premium is a small cost for guarantee issue Long Term Disability Income Protection Insurance that provides tax-free nearly double the net benefit of traditional employer-paid plans.

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