Your coverage will become effective when it is put in force by The Standard, approximately 90 days after you receive your enrollment package, assuming you complete your enrollment application as instructed. Your specific effective date is noted in your personalized enrollment package.
If your policy is approved and issued, premiums for the coverage will be deducted from your Penn paycheck on an after-tax basis. Deductions will begin in the month preceeding your effective date of coverage.
If you apply and are approved for coverage as a newly eligible employee, all pre-existing conditions are covered.If you are not a newly eligible employee, and apply as a late enrollee, the policy issued will contain a pre-existing condition exclusion.
A pre-existing condition exclusion means that disabilities caused or contributed to by a pre-existing condition will be covered only if, on the date of disability, the policy has been in place for at least 12 consecutive months.
A pre-existing condition is any mental or physical condition for which you have sought medical advice, care or treatment or a reasonably prudent person would have sought medical advice, care or treatment, during the 3 month period ending the day before your policy effective date.
Yes. If you qualify to apply for coverage as a newly eligible employee, only limited information about your medical history is required as part of the application process. This includes information about your use of tobacco or nicotine in any form in the last 12 months and your active work status for the last six months. If you are not a newly eligible employee, you may still apply by providing the limited information noted above. If approved, a pre-existing condition clause will be added to your policy.
During any covered period of disability the monthly benefit you receive will equal the policy's maximum monthly benefit times your loss of earnings ratio. The loss of earnings ratio equals your loss of earnings divided by your indexed pre-disability earnings. If your loss of earnings ratio is more than 80%, your monthly benefit will equal the maximum monthly benefit. Loss of earnings refers to your indexed pre-disability earnings minus your work earnings.
In the example below, the maximum monthly benefit amount is $1,000. The employee's monthly earnings before becoming disabled (or indexed pre-disability earnings) were $10,000. Now, the employee is able to work part-time and has monthly work earnings of $4,000. The monthly benefit would be calculated as follows:
|Indexed pre-disability earnings||$10,000|
|Less work earnings||$-4,000|
|Loss of earnings||$6,000|
|Divided by indexed pre-disability earnings||/ $10,000|
|Loss of earnings ratio||.60 (60%)|
|Maximum monthly benefit||$1,000|
|Times loss of earnings ratio||x.60|
Indexed pre-disability earnings are your monthly rate of earnings adjusted by the rate of increase in the CPI-W. This includes commissions, shift differential pay, bonuses, fees and income for services performed. Your monthly rate of earnings will be determined by adding the following amounts, as applicable, as reported on your federal income tax return or applicable schedule:
Pre-disability earnings also include:
Pre-disability earnings do not include overtime pay, your employer's contribution to a deferred compensation arrangement or pension plan, unearned income, interest, rents and royalties, or any other extra compensation.
Indexed work earnings include your gross monthly earnings from work you perform while disabled plus the earnings you could receive from work if you worked as much as you are able to, considering your disability.
The benefit waiting period is the period of time you must be continuously disabled before your monthly benefits become payable. Benefits are not payable during the benefit waiting period.
The benefit waiting period under this policy requires a total of 180 days of disability within a continuous 210 day period following the start of disability.
Monthly benefits end automatically on the earliest of:
Your supplemental LTD coverage ends automatically on the earliest of:
You may also terminate the policy by giving The Standard written notice. In this case, the effective date of the termination will be the later of the date stated in the notice and the end of the policy month in which The Standard receives the notice.
You may be eligible for disability benefits even while working and earning income. Disability benefits are determined by multiplying the maximum monthly benefit times your loss of earnings ratio. You must suffer an earnings loss of at least 20% in order to be eligible for benefits. If your loss of earnings ratio is greater than 80%, the monthly income will be the maximum monthly benefit.
See the enrollment instructions.