Your Passport to Income Protection. If you’ve never considered disability income insurance before, you may wonder why you may need it now, especially if you’re young and healthy. But most professionals, at all stages, at all income levels, may want to consider solid disability income protection. The Group Disability Income Plan can help you protect your earning capacity.
Chances are, you already protect your important assets such as your house. Your health insurance can only cover your medical expenses; it can’t provide a regular source of income. Why not help protect the most important asset you have: your ability to earn an income?
Practical Help
Alumni who are under age 60 and at FULL–TIME WORK can request this coverage, provided they reside in the United States (except territories) and Puerto Rico and have an ANNUAL NET EARNED INCOME of at least $20,000. Members on active duty in the Armed Forces are not eligible. (Not available in all states at this time. Contact the Administrator about availability in your state.)
"FULL–TIME WORK" means the active performance of regular duties of your normal occupation for pay or profit on the basis of at least 30 hours per week at the place where such duties are normally performed.
"Gross ANNUAL EARNED INCOME" means your wages, salaries, commissions, fees, and other amounts received for personal services—before deduction of income or social insurance taxes and after the deduction of normal and usual business expenses that are deductible for income tax purposes. It does not include income from interest, dividends, rent, royalties, annuities, other insurance and other unearned income.
This policy is designed to provide you with a regular monthly income when you are Totally Disabled and unable to work as a result of covered injury or sickness.
This insurance pays benefits directly to you if you are unable to perform the material and substantial duties of your profession during the Waiting Period and for the first 24 consecutive months of a claim; thereafter any occupation for which you are qualified based on your education, training or experience. You may not engage in any occupation for pay or profit.
| Before age 66 | Up to 5 years |
| At age 66 but before 67 | Up to 4 years |
| At age 67 but before 68 | Up to 3 years |
| At age 68 but before 69 | Up to 2 years |
| At age 69 but before 70 | Up to 1 year |
For disabilities due to mental disorders or substance abuse, the benefit period will be limited as noted in Exclusion and Limitations.
You may choose a Monthly Benefit Option from $100 to $10,000 (in $100 units). Total disability benefits you receive from this policy and any from other income replacement policies (including Worker's Compensation, Social Security, employer-sponsored salary continuation, group or franchise policies or retirement programs) you may have or for which you are applying may not exceed 50% of your AVERAGE MONTHLY INCOME. This is the monthly average of your ANNUAL EARNED INCOME for the following period that produces the highest figure: precedint tax year; preceding two tax years; or the entire period, if less than 12 months.
At age 65, a monthly benefit in excess of $2,000 will be reduced to $2,000, with a corresponding adjustment in premium. This reduction will not apply if you are on claim and receiving benefits.
The Waiting Period establishes when your monthly benefits can begin. You can request that benefits begin on the 61st, 91st or 181st day of your disability. The longer you wait, the more economical your premium will be.
After six months of receiving benefit payments for a Total Disability, all future premium contributions under the policy will be waived for as long as you receive benefits for that disability. When you stop receiving monthly benefits premiums must again be paid when due.
Successive periods of disability that are due to the same or related causes will be considered a single period of disability unless separated by a return to FULL–TIME WORK of 180 days or more. (Unrelated disabilities not separated by a return of FULL–TIME WORK will also be considered a single period of disability.)
The insurance cost is based on the Waiting Period, Monthly Benefit, and on your attained age when coverage becomes effective. Cost increases when you enter a higher age bracket. Premium contributions will vary depending upon the options and amounts chosen.
Age |
(60-Day Waiting Period) |
Benefits Start on 91st Day (90-Day Waiting Period) |
Benefits Start on 181st Day (180-Day Waiting Period) |
|---|---|---|---|
| Under 30 | $3.00 | $2.20 | $1.65 |
| 30-34 | $4.00 | $3.20 | $2.40 |
| 35-39 | 5.20 | 4.20 | 3.25 |
| 40-44 | 7.00 | 5.20 | 3.76 |
| 45-49 | 10.60 | 8.20 | 6.78 |
| 50-54 | 17.00 | 12.40 | 9.86 |
| 55-59 | 27.80 | 21.00 | 16.23 |
| 60-69* | 27.80 | 21.00 | 14.62 |
*Renewal rates only. Only those under age 60 may apply. Insurance terminates at age 70.
Rates will not be changed unless they are charged for all insureds in your classification, or when you reach the next age category.
Coverage greater than $2,000 will be reduced to $2,000 upon attainment of age 65.
Exclusions And LimitationsNo benefits are payable for any period of disability which you are not under the direct care and treatment of a licensed physician. Benefits are not payable for disability due to: war or act of war, military service, preexisting condition (see below), intentionally self-inflicted injuries whether sane or insane, or your participation in (except as a victim) or incarceration for a crime or illegal activity. Benefits are not payable during the Waiting Period. The benefit period for disability due to mental, nervous or emotional disorders, alcoholism and drug addiction will be limited to a maximum of 24 months. This limitation does no apply to any period during which the insured person is institutionalized. PRE-EXISTING CONDITION LIMITATIONNo benefits will be paid for any disability which is a result of a pre-existing condition. A pre-existing condition is an injury or sickness for which a person incurred charges, received medical treatment, consulted a physician or took prescribed drugs during the 12 months immediately before the insured's Effective Date of insurance. Benefits are not payable for a disability due to a pre-existing condition until the earlier of: 12 consecutive months during which you have not consulted a physician, took medication, or received medical services or supplies, or; 24 months. |
Insurance for the Disability Income Insurance Plan becomes effective on the date the application is approved by New York Life Insurance Company, provided the first premium has been paid. You must be at FULL-TIME WORK on the date insurance is to take effect. If not, insurance will take effect on the date you resume such work.
The insurance company cannot terminate coverage or change premiums on an individual basis. While the Group Policy remains in force, you can remain insured until age 70, provide you do not cease FULL-TIME WORK, as defined, for reason other than total disability, and pay premiums on time. Coverage terminates if you enter Active Duty, cease to be a resident of the United States or are on foreign travel for longer than 12 months.
A person's insurance will end at the earliest of the date the group policy ends; the date insurance ends for his/her class; the end of the period for which the last premium has been paid by him/her; the date the person ceases full-time employment for reasons other than total disability.
When you become insured you will be sent a Certificate of Insurance summarizing your insurance coverage. If you are not completely satisfied with the terms of your Certificate, you may return it, without claim, within 30 days. Your coverage will be invalidated and you will receive a full refund—no questions asked.
How New York Life Obtains Information and Underwrites Your Request For The Group Disability Income Insurance Plan
In this notice, references to "you" and "your" include any person proposed for insurance. Information regarding insurability will be treated as confidential. In considering whether the person(s) in your request for the insurance qualify for insurance, we will rely on the medical information you provide, and on the information you AUTHORIZE us to obtain from your physician, other medical practitioners and facilities, other insurance companies to which you have applied for insurance and MIB, LLC ("MIB"). MIB is a not-for-profit organization of insurance companies, which operates an information exchange on behalf of its members. If you apply for life or health insurance coverage or claim for benefits is submitted to an MIB member company, medical or non-medical information may be given to MIB and such information may then be furnished by MIB, upon request, to a member company.
Your AUTHORIZATION may be used for a period of 24 months from the date you signed the application for insurance, unless sooner revoked. The AUTHORIZATION may be revoked at any time by notifying New York Life in writing at the address provided. Your revocation will not be effective to the extent New York Life or any other person already has disclosed or collected information or taken other action in reliance on it, or to the extent that New York Life has a legal right to contest a claim under an insurance certificate or the certificate itself. The information New York Life obtains through your AUTHORIZATION may become subject to further disclosure. For example, New York Life may be required to provide it to insurance, regulatory or other government agencies. In this case, the information may no longer be protected by the rules governing your AUTHORIZATION.
MIB and other insurance companies may also furnish New York Life, its subsidiaries or the Plan Administrator with non-medical information (such as driving records, past convictions, hazardous sport or aviation activity, use of alcohol or drugs, and other application for insurance). The information provided may include information that may predate the time frame stated on the medical questions section, if any, on this application. This information may be used during the underwriting and claims processes, where permitted by law.
New York Life may release this information to the Plan Administrator, other insurance companies to which you may apply for life and health insurance, or to which a claim for benefits may be submitted and to others whom you authorize in writing. However, this will not be done in connection with test results concerning Acquired Immune Deficiency Syndrome (AIDS) or Human Immunodeficiency Virus (HIV). We may also make a brief report of your protected health information to MIB, but we will not disclose our underwriting decision.
New York Life will not disclose such information to anyone except those you authorize or where required or permitted by law. Information in our files may be seen by New York Life and Plan Administrator employees, but only on a "need to know" basis in considering your request. Upon receipt of all requested information, we will make a determination as to whether your request for insurance can be approved.
If we cannot provide the coverage you requested, we will tell you why. If you feel our information is inaccurate, you will be given a change to correct or complete the information in our files. Upon written request to New York Life or MIB, you will be provided with non-medical information. Generally, medical information will be given either directly to the proposed insured or to a medical professional designated by the proposed insured. Your request is handled in accordance with the Federal Fair Credit Reporting Act procedures. If you question the accuracy to the information provided by the MIB, you may contact MIB and seek a correction. MIB's information Office is: MIB, LLC 50 Braintree Hill Park, Suite 400,Braintree, MA 02184-8734, telephone 1-866-692-6901 (TTY 866 346-3642)
Information for consumers about MIB may be obtained on its Web site at http://www.mib.com/
For NM Residents: PROTECTED PERSONS1 have a right of access to certain CONFIDENTIAL ABUSE INFORMATION2 we maintain in our files and they may choose to receive such information directly. You have the right to register as a PROTECTED PERSON by sending a signed request to the Administrator at the address listed on the application. Please include your full name, date of birth and address.
1PROTECTED PERSON means victim of domestic abuse; who has notified us that he/she is or has been a victim of domestic abuse; and who is an insured or prospective insured person.
2CONFIDENTIAL ABUSE INFORMATION means information about: acts of domestic abuse status; the work or home address or telephone number of a victim of domestic abuse; or the status of an applicant or insured family member, employer or associate of a victim of domestic abuse or a person with whom the applicant or insured is known to have a direct, close, personal, family or abuse-related relationship.
New York Life Insurance Company
10/12 ed.
This section contains only a partial description of some of the principal provisions and definitions of the coverage. The complete terms and conditions are set forth in the group policy issued by New York Life Insurance Company to the Alumni Association of the University of Michigan.
AAUM incurs costs in connection with this sponsored Program. To provide and maintain this valuable membership benefit, it is reimbursed for these costs. The AAUM also receives a fee for the license of its name and logo for use in connection with this coverage.
Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010, under Group Policy G-30945
About New York Life Insurance Company
Who is the underwriter?
Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010, under Group Policy No. G-30945-0, on Policy Form G-30945-0/GMR-FACE.
About New York Life Insurance Company.
How much insurance do I need?
Who is eligible for this insurance?
Members under age 60 who are at FULL-TIME WORK (as defined in the brochure) are eligible to request coverage, provided their gross annual income is at least $20,000.00. (Student members are not eligible unless working full-time.)
This coverage is available to residents of the United States (except territories) and Puerto Rico. Not available in all states at this time. Contact the Administrator about availability in your state.
What is the waiting period?
How much insurance can I request?
How is Total Disability defined?
Will I meet with a sales person?
When is the coverage effective?
You will become insured on the date specified by New York Life Insurance Company provided the first premium contribution has been paid. You must be at FULL-TIME WORK on the date insurance is to take effect. If not, insurance will take effect on the day you resume such work.
Payment of a premium contribution for insurance does not mean there is any coverage in force before the effective date specified by New York Life Insurance Company.
Note: There are instances where New York Life Insurance Company may be able to offer insurance, at the same cost, by eliminating coverage for a specific impairment or disease.
When does the coverage end?
Are there any exclusions?
What if I have second thoughts after I apply?