What would you do if you had Paycheck Insurance with

What would you do if you had
a disability and could not work?
Paycheck Insurance with
Disability Insurance is the answer.
Why is disability insurance so important? How long can you go without an income?
If you are a Postal Employee and become permanently and totally
disabled, you may be eligible for retirement disability benefits.
• However, what happens if you are not permanently disabled,
but are unable to work for an extended period of time due
to a serious illness or accidental injury? It’s difficult for most
working age adults to imagine a time when they are unable
to work for several months and need disability insurance
benefits.
• The NRLCA has developed a plan that fills that gap. Consider this plan if you are a newly hired employee, do not have a
substantial amount of sick leave or just want extra protection and peace of mind.
A serious illness or accidental injury can deplete your savings in
a relatively short period of time. By planning ahead and getting
the right coverage, you will be able to cover:
• Mortgage or rent • Credit cards and other debts
• Food
• Health, life and auto insurance premiums
• Utilities • Car payments
• Clothing • Other transportation expenses
Top 4 Reasons to Consider the NRLCA Disability Program
1) FERS disability income coverage does not cover
partial disability benefits.
In a recent study of NRLCA claims, over 72% of disabilities
were partial or residual disabilities. In each of these cases
the member would not qualify for FERS disability income
protection.
2) Any federal disability retirement income is taxable.
The disability income benefits provided by the NRLCA disability plan are not taxable* to a member, which means a greater
amount of income replacement for members when they need
it most. *IRS Publication 907
3) Approval process for FERS and Social Security disability
can take a long time.
Under FERS and Social Security, a member may have to
wait up to a year for an approval of their claim. The NRLCA
Disability Program has an average claim approval process of
60 days with another Federal Government Association.
4) There are significant gaps in the federally provided
disability income (FERS) protection plan.
In order to file a total disability claim with FERS there is a six
month waiting period.
FERS does not provide a disability income benefit unless
the disability is to last at least 12 months. After 12 months,
the member would receive a 60% benefit only if they were
totally disabled and could not come back to their position as
a Postal Employee. At the start of year 2, the FERS disability
income plan will reduce payments to provide only a 40%
income replacement.
SPECIAL NOTE: New Postal Employees must wait until after
18 months of service to qualify for FERS disability income
protection.
With the NRLCA Disability Program, members can elect a
60% income replacement benefit, up to a $3,000 monthly
benefit, to be paid after a member has been disabled and has
satisfied the waiting period of the plan selected.
Disability Claim Example and Not Filing for FERS Total
Disability Retirement Using the NRLCA Disability Program
Total Disability
YEAR 1
FERS Disability (DI)
NAPUS Disability Solutions
BEGINNING OR ONSET OF DISABILITY
period)
period)
for disabilities)
YEAR 2
ement
NRLCA0 Disability Solutions
60
60%
YEAR 3+
period)
FERS
FERS
(No Payment during
FERS
1 year
waiting period)
(No
FERS
Payment
%
60%
%
5%
40% %
60
5% Income Replacement
FERS
FERS
60% Income Replacement
40% Income
Replacement
NRLCA
Income
NRLCADisability
DI
60%
IncomeReplacement
Replacement
60%
Income
(up to $3000 per month)
20% DI
NAPUS
ement
40%
ement
%
0%60
ement
(No Payment during
FERS 1 year waiting period)
NRLCA Disability Solutions
YEAR 2
NRLCA DI
FERS
period)
NRLCA
Disability Income
NRLCA DI
FERS
60%
Income
60%
IncomeReplacement
Replacement
60%
Income per
Replacement
(up
to $3000
month)
5%
20%
40%
NRLCA DI
20% Income Replacement
FERS
40% Income
NRLCA
DI Replacement
5% Income Replacement
FERS
FERS
(No
Payment
60%
Incomefor
Replacement
Partial Disability)
If you disabled for a short time,
there is no coverage%from FERS.NAPUS DI
65
Replacement
With the NRLCA Disability Program65%
you Income
can have
a limited
loss of duties and partial income loss and still qualify for
NRLCA Disability Program. You will not lose your financial
independence as well as your valuable position as a Federal
employee due to sickness or injury.
NAPUS DI
NRLCA Disability Program will provide
24-hourReplacement
on- and off5% Income
the-job coverage. 60%
FERS
60% Income Replacement
%
5
NAPUS DI
25%longer than
If your disability lasts
1 year
butReplacement
you are not
25%
Income
filing for FERS Total
Disability Retirement
FERS
40%
Income
In each of these cases the member40%
would
not Replacement
qualify for
FERS disability income protection. With the NRLCA Disability
Program members can replace up to 60% of their income
tax free and continue to meet their families’ financial obligations while coping with a sickness or injury.
FERS disability income benefits do not allow a Federal
employee to be paid and receive any benefits while partially
disabled.
NRLCA DI
20% Income Replacement
FERS
40% Income Replacement
Actual NRLCA claim data:
Over 72% of disabilities
were partial disabilities.
Disability Insurance
Benefit Summary - Short-Term Disability
Benefit Period: 6 months
Waiting Period: 30 days after a illness or injury
Monthly Benefit: 60% up to $3,000 per month
Benefit Period: 3 months
Waiting Period: 90 days after a illness or injury
Monthly Benefit: 60% up to $3,000 per month
Benefit Summary - Long-Term Disability
Benefit Period: 1 year
Waiting Period: 14 days after a illness or injury
Monthly Benefit: 60% up to $3,000 per month
Benefit Period: 2 year
Waiting Period: 30 days after a illness or injury
Monthly Benefit: 60% up to $3,000 per month
Eligible Benefits and Amounts
A member is eligible to receive benefits:
•When totally disabled
•Under a physician’s care
•The accident or sickness is non-work related
•The selected elimination period has been satisfied
Pre-Existing Condition Limitation
•No benefit for a pre-existing condition until the insured has been continuously covered under the policy for
12 consecutive months
•Must be performing the duties of his or her occupation for 30 continuous days after the first 12 months of coverage
Base Coverage
•Waiver of Premium – An insured member does not pay premiums after 90 consecutive days of total disability
or the satisfaction of the elimination period, whichever is later.
•Partial Disability Benefit – A partial disability will be paid if an insured becomes partially disabled due to the same cause
as total disability. The benefit is 50% of the initial benefit.
•Accelerated Benefit for Terminal Illness – If a member is diagnosed with a terminal illness for the first time, on or after
the effective date of coverage, the plan will accelerate the monthly disability benefit for the remaining months of payments
of the maximum disability period of the contract selected. Rider Form Series CRDITI00
•Mental Illness Limited Benefit – Totally Disabled due to a Mental Illness, regardless of the cause, Disability Benefits will
be paid for the period. Mental Illness means Disability due to or resulting from psychiatric or psychological conditions, regardless of cause. The term Mental Illness does not apply to dementia, if due to Stroke, Trauma, Viral infection, Alzheimer’s
disease, or other conditions not usually treated by a mental health provider using psychotherapy, psychotropic drugs, or
other similar modalities
When do Benefits Begin?
After completing the waiting period for the benefit period selected for either illness or injury, the plan will pay the selected benefit amount for the benefit period selected or the end of the disability which ever is sooner.
For More Information go to
www.RC-Benefits.com
or call (877) 817-4801
It’s Time to Insure
Your Paycheck!
For More Information call (877) 817-4801
or go to www.RC-Benefits.com
For further information about the risk of disabilities,
go to www.disabilitycanhappen.org