Top 6 Reasons to Consider the NRLCA Disability Income Gap Program 

 

 

1) To Be Eligible for FERS Total Disability Benefits, Your Disability Must be Expected to Last at Least One Year.

 

How would you pay for living expenses if you could not work for several months, but your disabling illness or injury is expected to last less than 12 months? After a 90 day waiting period, you could receive replacement income from the NRLCA Disability Income Gap Program. 

 

2) Are You Eligible for the FERS Total Disability Plan? 

 

New Federal Employees must wait until after 18 months of service to qualify for FERS disability income protection.

 

3) Gaps in the FERS Total Disability Plan 

 

There are significant gaps in the federally provided disability income (FERS) protection plan. (1) FERS does not provide a disability income benefit unless the disability is expected to last at least 12 months. (2) After being approved for FERS Total Disability, the member would receive a benefit of 60% of pre-disability income for twelve (12) months, only if they were totally disabled. (3) At the start of the thirtheen month (13), the FERS disability income will reduce payments to provide only a 40% income replacement.

 

4) Partial Disabilities are Not Covered 

 

FERS disability income coverage does not include partial disability benefits. In a recent study of federal employee claims, over 72% of disabilities were partial or residual disabilities lasting less than a year.2 In each of these cases the member would not qualify for FERS disability income protection. 

 

5) FERS Disability Payments are Taxable

 

Any federal disability retirement income benefit is taxable. The disability income benefits provided by the NRLCA Disability Income Gap Program are not taxable* to a member, which means a greater amount of income replacement for members when they need it most. *IRS Publication 907 

 

6) Approval Process Takes a Long Time 

 

Approval process for FERS and Social Security disability can take a long time. Under FERS and Social Security, a federal employee may have to wait up to a year for an approval of their claim. NRLCA Disability Income Gap Program averages 30 days or less to make a final decision on all claims. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How long can you go without an income?

A serious medical condition or accidental injury can deplete your savings in a relatively short period of time. By planning ahead and getting the right coverage, you will be able to cover:

 

• Mortgage or rent

• Credit cards and other debts

• Food

• Health, life and auto insurance premiums

• Utilities

• Car payments

• Clothing

• Other transportation expenses

 

Benefit Summary

 

 

OPTION 1

Benefit Period: 1 year 
Waiting Period: 14 days after a illness or injury 
Monthly Benefit: 60% up to $3,000 per month

 

OPTION 2

Benefit Period: 2 year
Waiting Period: 30 days after a illness or injury
Monthly Benefit: 60% up to $3,000 per month

Eligible Benefits and Amounts

 

A member is eligible to receive benefits:

 

• When totally disabled

• Under a physician’s care

• The accident or sickness is non-work related

• The selected elimination period has been satisfied

 

Pre-Existing Condition Limitation

 

 

No benefit for a pre-existing condition until the insured has been continuously covered under the policy for 12 consecutive months

 

Must be performing the duties of his or her occupation for 30 continuous days after the first 12 months of coverage

 

Base Coverage

 

 

Waiver of Premium – An insured member does not pay premiums after 90 consecutive days of total disability or the satisfaction of the elimination period, whichever is later.

 

Partial Disability Benefit – A partial disability will be paid if an insured becomes partially disabled due to the same cause as total disability. The benefit is 50% of the initial benefit.

 

Accelerated Benefit for Terminal Illness – If a member is diagnosed with a terminal illness for the first time, on or after the effective date of coverage, the plan will accelerate the monthly disability benefit for the remaining months of payments of the maximum disability period of the contract selected. Rider Form Series CRDITI00

 

Mental Illness Limited Benefit – Totally Disabled due to a Mental Illness, regardless of the cause, Disability Benefits will be paid for the period. Mental Illness means Disability due to or resulting from psychiatric or psychological conditions, regardless of cause. The term Mental Illness does not apply to dementia, if due to Stroke, Trauma, Viral infection, Alzheimer’s disease, or other conditions not usually treated by a mental health provider using psychotherapy, psychotropic drugs, or other similar modalities

 

When do Benefits Begin?

 

 

After completing the waiting period for the benefit period selected for either illness or injury, the plan will pay the selected benefit amount for the benefit period selected or the end of the disability which ever is sooner.