Long-Term Disability Coverage (LTD)

• Highlights
• Eligibility and Coverage
• Cost of coverage
• Additional Provisions
• CIGNA Long-Term Disability Brochure

If illness or injury leaves you unable to continue working, UNM offers long-term disability insurance (LTD).  This plan helps to replace a portion of your income due to total disability.

Highlights

• LTD provides you with benefits based on your monthly earnings AND insures up to 60% of your monthly income with a maximum benefit of $5,000 a month.

• Benefit payments begin after six (6) consecutive months of disability and continue up to age 65 (refer to the certificate of coverage for restrictions). 

• Mental and nervous disorders or alcohol and drug-related disabilities are limited to a 24-month duration.

• LTD benefits may be offset by other income.  If you are eligible for income from other sources because of your disability (e.g., disability retirement through ERB or Social Security), the LTD benefit will be reduced by the amount received, but will not be less than $50 per month.  Please refer to your certificate of coverage for specific details.
  
  
• If you did not enroll during your initial 60-day eligibility period, you can enroll at anytime by completing the long term disability application form and the corresponding medical questionaire "Evidence of Insurability" form. Your application will be forwarded to CIGNA for their reveiw and approval. Upon approval your coverage will be processed and deductions from your pay will begin upon approval.

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 Eligibility and coverage

In order to be eligible for LTD, you must:

• Be working part-time (50% appointment percentage) or more,
• Be a faculty or staff member in a regular position, and
• Have an annual salary of $10,000 or more.

Note:  Since LTD is offered as a group plan, you must enroll during your initial eligibility period (i.e., within the first 60 days of your hire or eligibility date) to be guaranteed acceptance and coverage. If you wait to enroll after the initial eligibility period, you must petition for coverage via health statement. Coverage acceptance is then subject to underwriting review and acceptance is not guaranteed.

Coverage is not available for dependents.

Disability definition:

• You are considered disabled if, solely because of sickness or injury, you are unable to perform the material duties of your regular occupation or you are unable to earn 80% of your pre-disability earnings. 
• After 60 months, you are considered disabled if you cannot perform the duties of any occupation or earn 60% of your pre-disability earnings.
• If you did not enroll during your initial 60-day eligibility period, you can enroll at anytime by completing the long term disability application form and the corresponding medical questionaire "Evidence of Insurability" form. Your application will be forwarded to CIGNA for their reveiw and approval. Upon approval your coverage will be processed and deductions from your pay will begin upon approval.

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Cost of coverage

• LTD is offered on a voluntary basis with a UNM contribution based on your salary and appointment percentage.  The premium is made through monthly or biweekly payroll deductions.

• The cost of coverage is $.33 per $100 of your monthly salary.  The table below shows the cost of LTD coverage at various salary levels and the monthly benefit an employee may receive for long-term disability (refer to UNM’s contribution table at the beginning of the CIGNA section). UNM's contribution has been included in the calculation.

 

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Additional Provisions

• LTD offers a Return to Work Incentive.  This gives an employee the opportunity to receive earnings in addition to their disability benefit in order to make close to 100% of their pre-disability earnings.  Earnings and disability benefits become subject to taxes under the Return to Work program.

• This plan also contains a Survivor Income Benefit that will be provided to your beneficiaries in the case of your death during the disability period.  The benefit will be an amount equal to three (3) times the participant’s last monthly benefit (prior to reductions) to a maximum of $15,000, to be paid in a lump sum. 

• Pre-existing conditions are not covered for twelve (12) months from your effective date of coverage.  A pre-existing condition is a sickness or injury for which you have received medical treatment, consultation, care, or services- including diagnostic measures, or prescribed drugs or medicines- during the three (3) months prior to the effective date.

CIGNA, the LTD carrier, offers extensive rehabilitation services to assist you in regaining the ability to work at your pre-disability occupation or in a new occupation.  Refer to CIGNA’s brochure for more details and contact information.

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CIGNA Long-Term Disability Brochure