September 2000

Disability Income Insurance Available to Society Members

The NYSSCPA Disability Income Insurance Plan provides supplemental coverage that allows the insured to choose the benefits to be received from the coverage. The insured chooses the amount of the weekly benefit and the date the coverage will begin.

The importance of disability protection is often underestimated in comparison with other forms of insurance. Automobile, medical, and life insurance are the three types of insurance an individual is most likely to own; however, disability income insurance may be the one type of insurance a person is most likely to need (especially considering an April 1999 report in Best’s Review which stated that 70 percent of individuals aged 35 - 65 will be disabled for at least three months. Individuals aged 30 - 65 are three times more likely to become disabled than to die before age 65, according to an April 1992 article in Life Insurance Selling.

The Society’s disability income insurance plan protects the one asset members may need the most: income. With up to $1,500 per week in protection, an individual who becomes disabled can still meet expenses. When considering disability coverage, insureds should determine how long their savings could meet their expenses and should consider how mortgage, credit card debt, loan, and car payments would be met. Affordable group premiums can protect assets against losses due to a long-term disability without disrupting the insured’s family budget.

With the NYSSCPA disability income insurance plan, members under 60 years old can choose a weekly benefit of $100 to $1,500. The benefit

1) should be based on the member’s weekly income,
2) should be sufficient to cover any bills in case of a disabling accident or illness, and
3) must not exceed 60 percent of weekly income. Members aged 60 - 69 are eligible for the $100 weekly benefit, and coverage can be renewed until the member reaches age 75. All members that work at least 20 hours a week are eligible for this coverage.

The disability benefits can also be coordinated with other benefits the insured receives. Unlike many similar plans, the Society’s plan pays benefits in addition to amounts the member may receive from Social Security or any other disability plan. NYSSCPA members are insured under an employer-sponsored group disability plan - participants should check the provisions of their other policies to ensure the benefits from these plans would not be reduced by benefits paid under the NYSSCPA group policy.

The plan offers a choice of four pay-out options with various waiting periods, and participants are entitled to special added benefits not be found in many similar plans. Rehabilitation benefits, for example, allow the insured to continue collecting weekly benefits upon election to participate in a vocational rehabilitation program. The weekly benefit amount will be reduced by 50 percent of the member’s weekly income received while participating in the program. The benefits are payable for up to 12 months to members under 65.

The plan also pays a portion of the maximum benefit to partially disabled persons. If the insured returns to work but cannot work full-time due to disability, the plan will pay up to 50 percent of the weekly benefit. The insured is also entitled to a cost of living benefit every January 1 following each calendar year of total disability. This benefit will adjust the participant’s weekly benefit amount by up to 5 percent to compensate for changes in the cost of living.

Employee coverage is also available for Society members that manage their own firm (with the exception of Plan 1/8).

With the NYSSCPA group disability income insurance plan, participants are entitled to group-priced premiums as a result of the size of the Society’s membership. These premiums are often extremely affordable in comparison with an individual policy and are backed by U.S. Life Insurance Company of New York, which has received an A+ rating from A.M. Best Company.

Members interested in receiving information on the plan can contact NYSSCPA insurance administrator Wohlers/Seabury & Smith at 1440 N Northwest Highway, Park Ridge, IL 60068-1400. To receive a brochure and application, contact the NYSSCPA account executive toll free at (800) 342-6501.