All of the answers contained in this document that relate to policy benefits, limitations and exclusions are abbreviations of the contractual guarantees contained within the policy certificate and do not modify the certificate in any way. Please refer to the sample policy certificate for actual wording. The page numbers after certain questions refer to the policy certificate where actual wording can be found.
Application Process
1.Who is eligible to apply?
Dues paying members working a minimum of 20 hours per week who fall into these NAPFA member categories:
a. NAPFA Registered Financial Advisors,
b. Provisional Members
c. Financial Services Affiliates
d. Corporate Members
e. Student Affiliates
Employees of members of the categories above working a minimum of 20 hours a week are also eligible (after working for the NAPFA member for 90 days).
Employees of NAPFA are also eligible.
2. How can members qualify for guaranteed issue coverage with no health questions?
Apply within 60 days of becoming a new NAPFA member or eligible employee (eligible 90 days after employment date). If you fail to apply during this time frame, you can still apply for coverage, but you must complete the Medical Health Statement specific to your state. Underwriting decisions are usually made within 60 days of applying. A medical exam arranged by Standard Insurance Company may be required.
3. How do I calculate my monthly disability benefit and premium?
Use the "Get a Free Quote" link found in the NAPFA LTD section.
4. How does Standard Insurance Company define earnings?
Definitions of Monthly Earnings - Click Here
5. What type of financial documentation do I need to show to purchase benefits?
There is no financial underwriting at time of application. If you have a claim, Standard Insurance Company will require proof of income such as last year’s tax return, profit and loss statements, W-2 etc.
6. Can I apply for coverage that is less than 60% of my earnings?
No. Due to the possible risk of anti-selection, and since the premium structure Standard Insurance Company has created for this plan, you are required to input your full average monthly income and generate the appropriate benefit and premium.
7. If a new member wants to apply but does not have a prior years income in the financial services industry, can they still apply?
Yes, they can enter the minimum monthly income requirement of $167.00 on the benefit/premium calculator. This will generate a minimum monthly benefit of $100.00. Each year they can increase their benefits based on increased earnings.
8. Can I increase my benefits each year as my income increases?
Yes, you can increase each year. And, if you are already insured, you can do so non-medically. Use the "Update My Benefits" link.
9. Will my personal information listed on the application be kept in the strictest confidence and security?
YES. All information gathered is used solely for the purpose of plan enrollment/updates and will be used for no other purpose. If you are uncomfortable with the electronic system, you may also fax or mail your application documents to us.
10. How do I pay my premiums?
Funds will be deducted automatically from the bank account of your choice by the 10th of each month and will be listed on your statement as LTD and policy number 140361, which corresponds with the policy number found in your plan certificate. Monthly bank draft is the only method of payment.
NOTE: If you object to bank drafts, you can open a new account and deposit a year’s worth of premiums each year to limit your account balance.
11. Should I replace my individual disability coverage policy (non-can) with this new policy?
Generally, NO. Instead of a complete replacement, you might consider modifying your existing plan and using the savings to purchase the NAPFA plan as a supplement. For instance, you could extend your elimination period, reduce your monthly benefit, remove the cost of living rider etc. A combination of plans may be the best strategy. (Go to Disability Articles and read “Maximize Benefits and Reduce Costs” for more information.)
12. Will my premiums increase with age?
Yes, premiums are in 5 year age brackets. (Age 40-44, 45-49, etc.) Your premiums will be adjusted the month following any birthday that moves you into the next bracket. You can use the "Get A Free Quote" calculator to put in different ages to see how premiums will adjust over time based on current rates.
Policy Definitions
12. How is disability defined?
(Pg.7)
a. For the first 36 months of disability, ‘Disability’ is defined as a sickness or injury that prevents you from performing with reasonable continuity the material duties of your own occupation and you experience a 20% loss of earnings.
b. After 36 months, you are disabled if you are unable to perform with reasonable continuity the material duties of any occupation.
- Any Occupation – means any occupation, which you are able to perform, based on prior education, training, or experience in which you can be expected to earn at least 60% of your pre-disability earnings within a 12-month period.
c. Partial Disability benefits are also included.
13. How long must I be disabled in order to receive benefits?
90 days of Total or Partial disability.
14. How much monthly benefit can I purchase?
Monthly benefits are equal to 60% of your average prior earnings to a monthly benefit maximum of $6,000.
15. How long can benefits are paid?
(Pg.2)
a. For claims occurring on or before age 61, benefits can be paid to age 65.
b. Benefit period maximums vary for claims occurring between age 62 and 69. The minimum available is 1 year.
See page 2 of the policy certificate for a detailed explanation.
16. Are benefits adjusted for inflation while on claim?
(Pg. 17)
If you have a claim greater than 5 years, your policy benefit can be adjusted by the inflation rider.
17. Can a portion of my retirement plan contributions be insured?
(Pg.17)
Yes, there is a unique annuity contribution protection benefit whereby Standard Insurance Company will contribute an additional monthly benefit (7% of pre disability earnings up to $5000/mo. max) into an annuity to help you continue to save for retirement. There is a 3-year elimination period for this benefit. However, once satisfied, there will be a lump sum benefit equal to 3 years to cover the elimination period.
18. Are there benefits for long term care expenses resulting from a catastrophic disability?
(Pg 15)
Yes, an additional monthly benefit (20% of pre disability earnings to a max benefit of $2000/mo) to help with long term care expenses can be paid.
19. Does the policy have a conversion option?
(Pg.19)
Yes, up to $4000/mo without medical underwriting.
Policy Limitations and Exclusions:
20. Does the plan have a pre-existing conditions clause?
Yes. The plan has a 6/24 pre-existing condition clause. This means if you received care or consultation for a mental or physical condition within the 6 months just prior to being insured, a sickness or injury from those conditions will be considered for claims payment once you have been insured under the plan for 24 consecutive months, even if the care is ongoing during that 24-month period
21. Will this plan reduce by other disability benefits I may receive at claim time?
(Pg. 12)
In general, if your existing policies offset with benefits received from another true group long-term disability policy, the answer is probably yes. So check with your other insurance carriers to see if they will offset with benefits received from a true group LTD plan. These benefits will not offset with benefits received from the the Prudential Association group policy for the AICPA. [AICPA plan may offset with these benefits if your current AICPA benefits exceed $4000/month.] So, it may be advisable to reduce the AICPA coverage and add maximum coverage with this plan. Again, check with your current insurance provider to make sure there is not a benefit offset with this plan.
This plan will not offset benefits with those received from an individually owned non-cancellable policy.
22. Can the policy be cancelled?
(Pg. 25)
Yes, if Standard Insurance Company or NAPFA cancels the agreement.
23. Are certain disabilities subject to limited pay periods?
(Pg.21)
Yes, disabilities caused by mental disorders and substance abuse.
24. What type of disabilities are excluded from coverage?
(Pg.20)
Disabilities resulting from war, self-inflicted injuries, pre-existing conditions within 24 months of being insured, being unable to work because of loss of professional license or criminal act.