NAPFA STD and LTD Insurance FAQs
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 policy certificate for actual wording.
APPLICATION AND ELIGIBILITY
1. Who is eligible to apply?
Dues paying members working a minimum of 20 hours per week who fall into these NAPFA member categories:
NAPFA Registered Financial Advisors
Employees of NAPFA Members or a NAPFA Member Firm
New eligible NAPFA members have 60 days from their date of membership to apply guaranteed acceptance (no medical questions). Members past the 60 days can still apply, but medical underwriting is required.
Employees must be employed by an eligible NAPFA member or NAPFA member firm and be working at least 20 hours per week. New employees can apply after 90 days of employment. They then have 60 days to enroll, guaranteed acceptance. Employees can still apply if they are past the 90 day + 60 day open enrollment, but medical underwriting is required. Employees can apply for coverage even if the member does not.
Note: In most cases, other group DI plans will offset these benefits. Please contact us before applying if you are covered under a group LTD plan.
*You are not eligible for the guarantee issue coverage offer if you were previously declined coverage by The Standard under this group policy, group policy 147789 (FPA), or group policy 649419(FSP).
2. Do I have to purchase Long Term Disability to enroll in the Short Term Disability Insurance and vice versa?
No, you can choose to enroll in one or both plans.
3. If I am already enrolled in the group LTD insurance through NAPFA do I need to renew my participation?
There is nothing you need to do to renew your participation. You are required to update your income at least once a year. You can do this by visiting the "NAPFA Group Insurance Benefits" home page and click "Benefit Update" Plan A or B then submitting your form electronically.
4. How does Standard Insurance Company define earnings?
Income is your gross earnings net of business expenses. You should include your contributions to qualified plans. With our new enhancements, your fees and trails are both includable in your pre-disability earnings AND will not reduce your benefits when you continue to receive them while totally disabled. Use your prior year's tax return.
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. How much monthly benefit can I purchase?
Group Long Term Disability (LTD)
Monthly benefits are equal to 60% of your average prior earnings to a monthly benefit maximum. There are two plan options; Plan A and Plan B. Plan A has a maximum monthly benefit of $6,000, covering a maximum monthly income of $10,000; Plan B’s benefit maximum is $15,000, covering a maximum monthly income of $25,000.
7. LTD-Should I choose Plan B if my monthly income is currently under $10,000?
Yes, if you think there is a possibility your income will exceed $10,000 in the future and you want to be able to keep purchasing more coverage without having to evidence insurability, you should choose Plan B.
The only difference between the options is the benefit maximums. Both plans use the same rate structure and have the same policy definitions. If your income never rises above $10,000, there is no disadvantage to being in Plan B.
8. LTD- Who should choose Plan A? Since members are required to keep their benefits at 60% of their income, Plan A is a good choice for members who don’t desire more than $6,000 of benefit. An example might be a member who is using the plan to supplement an individual disability policy.
9. LTD-What if I choose Plan A and want to switch to Plan B later?
If you decide to switch to Plan B, medical underwriting will be required when you increase your benefits beyond the $6,000 Plan A maximum. This is why we advise you to lock in your insurability by choosing Plan B now even if you don’t yet need the higher benefit level.
10. LTD-How do I calculate my monthly Long Term Disability benefits and premiums and enroll?
Once you have decided on Plan A or B, click the link to the plan page and use the “Get A Free Quote” button to calculate rates and benefits. “Apply Now” will take you to our secure, online application form.
Group Short Term Disability (STD)
Weekly benefits are equal to 70% of your average weekly earnings. There are two plan options; Plan A and Plan B. Both have a weekly benefit of up to $2,500 max. The difference in these plans is the start and length of benefit period, addressed in question # 17 under "Policy Definitions"
11. Can I apply for coverage that is less than 70% of my earnings on STD and/or 60% of earnings on LTD?
No. Due to the possible risk of anti-selection, and since Standard Insurance Company has created a group premium structure for this plan, you are required to input your full average monthly income and generate the appropriate benefit and premium.
12. Should I adjust my benefits each year as my income increases (or decreases)?
Yes, you should increase or decrease each year to keep your benefits to 70% for STD and 60% for LTD of your income up to the plan limits. And, if you are already insured, you can do so non-medically up to the benefit maximum of your chosen plan option. To do so, use the “Update My Benefits” button on found on the Plan A or Plan B plan page.
13. If a new member or employee of a 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 should increase their benefits based on increased earnings.
14. Will my personal information listed on the application be kept in the strictest confidence and security?
YES. All information entered on your electronic application is secured by COMODO, a leader in web-based security. All information gathered is used solely for the purpose of plan enrollment 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.
15. Do keep in mind that all plan correspondence is sent by email, including your annual benefits statement.
How do I pay my premiums?
Funds will be deducted automatically from the bank account of your choice on or around the 11th of each month (or within the next 3 business days following) and will be listed on your statement as "Association DI Plans, LLC NAPFA LTD" and/or "Association DI Plans, LLC NAPFA STD". Currently the monthly bank draft is the only method of payment.
NOTE: 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 see how premiums will adjust over time based on current rates.
16. 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.
17. How is disability defined?
Disability’ is defined as a sickness or injury that prevents you from performing with reasonable continuity the material duties of your own occupation. (There is no longer an "any occupation" period.)Partial Disability benefits are also included.
18. How long must I be disabled in order to receive benefits?
Short Term Disability
Plan A- Benefits begin on day 8 / Plan B- Benefits begin on day 30
Long Term Disability
After 90 days of Total or Partial disability.
19. How long can benefits are paid?
Long Term Disability
For claims occurring on or before age 61, benefits can be paid to Social Security Normal Retirement Age. Benefit period maximums vary for claims occurring between age 62 and 69. The minimum available is 1 year. Benefits are 1 year for claims at age 69 or older.
Short Term Disability
Benefits are paid up to 90 days. However, STD benefits will end on the date the LTD benefits become payable to you, if you are enrolled in the NAPFA group LTD plan or an employer group plan.
20. Are benefits adjusted for inflation while on claim in the LTD plan?
If you have a claim greater than 5 years, your policy benefit can be adjusted by the inflation rider.
21. Can a portion of my retirement plan contributions be insured in the LTD plan?
Yes, there is a unique annuity contribution protection benefit whereby Standard Insurance Company will contribute an additional monthly benefit (10% of pre disability earnings up to $5,000/mo. max) into an annuity to help you continue to save for retirement. There is a 3-yearelimination period for this benefit. However, once satisfied, there will be a lump sum benefit equal to 3 years to cover the elimination period.
22. Are there benefits in the LTD for long term care expenses resulting from a catastrophic disability?
Yes, an additional monthly benefit (20% of pre disability earnings to a max benefit of $2,000/mo. on Plan A, maximum $5,000/mo on Plan B ) to help with long term care expenses can be paid.
23. Does the policy have a conversion option?
Yes, in the LTD plan only, up to $4,000/mo. without medical underwriting. You must be on the plan at least one year prior to termination to be eligible for conversion.
Policy Limitations and Exclusions:
24. Does the plan have a pre-existing conditions clause?
LTD 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 disability resulting from that condition will be not considered for claims payment unless it occurs after you have been on the plan for 24 months.
STD plan has no Pre-Existing limitation for new enrollees applying within the 60 guaranteed acceptance timeline- Pre-Existing Conditions are covered like any other disability.
Those that apply outside of the 60 day guaranteed acceptance period will still be accepted for the STD coverage, however, an “Extended Benefit Waiting Period" will go into effect. This allows you to be covered for a STD caused by an accidental injury with a 14 day waiting period. All other disabilities including Physical Disease, Pregnancy, or Mental Disorder you must satisfy a 60 waiting period before coverage could begin. After 12 months this Extended Benefit Waiting Period would drop and all disabilities would be covered under the 14 day benefit waiting period.
25. Will this plan reduce by other disability benefits I may receive at claim time?
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 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 disability policy.
26. Can the policy be canceled?
Yes, if Standard Insurance Company or NAPFA cancels the agreement.
27. Are certain disabilities subject to limited pay periods?
Yes, disabilities caused by mental disorders and substance abuse.
28. What types of disabilities are excluded from coverage?
Disabilities resulting from war, self-inflicted injuries, pre-existing