Learn more about Highlights, Eligibility, Plan Details, and Coverage Limits and Rates.
FREQUENTLY ASKED QUESTIONS
Who should buy Long Term Disability Income Insurance?
Anyone who works and has an income should consider having a long term disability income insurance plan.
If you become sick or injured and unable to work, you may receive short term disability benefits through your employer. However, these benefits typically last for only 6 months. Once that runs out, a Long Term Disability Income plan of your own will help provide valuable financial assistance in paying your family’s living expenses for years to come.
If you are self-employed, you’ll have no employer-provided disability benefits—unless you plan ahead and provide them yourself. Whether you are employed or self-employed, the AIChE Group Disability Income plan gives you access to substantial benefits at economical group rates.
Who is eligible for the AIChE Group Disability Income Insurance plan?
This plan is available exclusively to active AIChE members:
- under age 65,
- working full-time (at least 30 hours per week),
- receiving a gross annual income of at least $20,000,
- who are residents of the U.S. or Puerto Rico (currently unavailable in FL, NH, TN, TX, VT, WA and territories)
In order to become insured, satisfactory evidence of insurability must be provided and the required premium must be paid.
What does Disability Income Insurance cover?
Disability insurance pays a monthly benefit if you are unable to perform any of the normal functions of your occupation due to a covered injury or illness.
After an initial period called the ‘waiting period,’ the AIChE Group Disability Income plan pays up to a maximum of 60% of your average monthly income, not to exceed $7,700 per month.
Payments continue for the duration of the disability or until the time limit stipulated in the group policy has been reached.
Won’t Social Security take care of me if I become disabled?
You should not count on Social Security Disability Income (SSDI) benefits to help protect you if you are disabled.
According to the “2010 Long-Term Disability Claims Review” published by the Council for Disability Awareness, 65% of Americans applying for SSDI benefits are denied.
You must be permanently disabled and unable to work any job, not just your current occupation to qualify for SSDI. Even if you are approved, SSDI’s payments would most likely not replace the income loss caused by your disability.
How much Disability Income Insurance do I need?
This depends on several considerations, most importantly, your annual income. Under this plan you can request a maximum of 60% of your average monthly income in monthly disability benefits. (See COVERAGE LIMITS AND RATES page for details.)
You also need to look at your fixed monthly expenses, like mortgage and car payments, utilities and medical insurance. You should also factor in any disability benefits you receive from your employer, investment income and possible income from your spouse.
When should I purchase Disability Income Insurance?
As soon as possible. There are several reasons not to wait. If you are earning an income, you should help protect it now. The cost of coverage will increase as you get older. If you are currently in good health, you should have no trouble qualifying for coverage. If your health declines or if you experience a disability, you may no longer be insurable—and if you are, it’s possible that impairment restriction riders (excluding coverage for certain conditions) may be attached to your coverage.
Are partial disabilities covered?
Yes. If you can perform some, but not all of the functions of your job, you are partially disabled. For example, you work for a manufacturing firm and are expected to visit job sites and lift materials. If you hurt your back and are unable to perform these functions, but still able to work in the lab, you are now partially disabled.
The AIChE Group Disability Income plan has a provision for ‘Residual Disability,’ meaning the plan can pay a percentage of your monthly disability benefits until you can resume all of your regular job duties.
I’m a smoker and a woman. Does that affect my Disability Income Insurance rates?
No. Although some disability plans rate smokers and females higher, the AIChE Group Disability Income plan provides one affordable group rate for all members regardless of gender or whether you are a smoker.
If I have a health problem, can I still get Disability Income Insurance?
The presence of current health problems or a history of health problems does not mean you will be denied disability insurance coverage.
Will my disability benefits be taxed?
If you purchase disability insurance and you pay premiums, this cost of insurance is not tax deductible, but if you receive income benefits because of disability, this income will not be subject to Federal Income Tax.*
If your employer buys a disability policy on your behalf as part of a company benefits program, that expense is tax deductible for the company, and any disability benefits you receive would be taxed as ordinary income.
*Always check with your accountant or tax advisor before you assume any tax deductibility or tax-free income issues.
How is “Total Disability” defined in the policy?
“Totally Disability” means you are completely and continuously prevented by illness or injury from performing the material and substantial duties of your usual occupation, provided you are not otherwise working for pay or profit.
How long are disability benefits payable?
This depends on the plan selected:
The Five-Year Plan pays monthly benefits for Total Disability for up to 60 months. For disabilities starting at ages 60 through 62, benefits continue up to age 65. For disabilities starting ages 63 through 69, benefits are payable for up to 24 months.
The Career Plan pays monthly benefits for Total Disability up to age 65 if you become disabled before age 63. For disabilities starting at ages 63 through 69, there is a 24 month maximum benefit period.
What is a “waiting period?”
A waiting period is the number of consecutive days you must be totally disabled before monthly benefit payments begin. The longer the waiting period, the lower your premium.
The AIChE Group Disability Income plan gives you five flexible waiting periods to choose from: 30, 60, 90, 180 or 365 days.
When selecting your waiting period, you should consider when any other benefits you might have, such as employer-provided coverage, will run out. For example, if you have short term coverage through work—which typically lasts for 6 months—you may want to consider a 180 day waiting period on your AIChE Group Disability Income plan.
How do I apply?
To apply download an application that you can complete and return to the program administrator by mail:
AIChE Insurance Program Administrator
159 E. County Line Road
Hatboro, PA 19040
Residents of Puerto Rico please send your completed application to:
Global Insurance Agency, Inc.
P.O. Box 9023918
San Juan, PR 00902-3918
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, you may return it, without claim, within 30 days. Your coverage will be invalidated and you will be sent a full refund.
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,
- satisfactory evidence of insurability has been submitted, and
- you are actively performing the normal activities of a person in good health of like age on that date.
If you are not performing your normal activities as required, coverage will not become effective until the day you are performing such normal activities provided such date is within three months of the date insurance would have been effective and you are still eligible for insurance.
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: Residents of MD and NC: Any reference to “performing normal activities” is replaced by the requirement that the health status of any proposed insured person remain the same as stated in your application.
When does the coverage end?
Your member coverage will cease on the earliest of the following:
- you reach age 70,
- you stop working full time (30 hours per week - other than for reasons of disability),
- your AIChE membership stops,
- you discontinue paying premium contributions when due,
- you enter full-time active duty in the armed forces (coverage may be restored upon termination of active duty status), or
- the group plan is terminated or modified by AIChE or New York Life Insurance Company to end insurance for the group of insureds to which the insured member belongs.
Are there any exclusions?
Yes. The Plan does not provide disability benefits for:
- intentionally self-inflicted injury while sane or insane,*
- war or military service,
- being in an aircraft except when riding as a passenger,
- illegal activity,
- pregnancy or childbirth (except complications), if such pregnancy began within 30 days of the coverage effective date,
- any impairment or disease specifically excluded from your coverage.
See PLAN DETAILS page for more information on exclusions and limitations
*Missouri residents: the exclusion for intentionally self-inflicted injury is not applicable to injury caused by an attempted suicide while insane.