Purchasing short term disability coverage allows you to receive income benefits when you are unable to work after a 15 or 30 consecutive day absence. You may use your sick and vacation accruals to receive income until your disability benefit begins and to supplement your income while receiving disability payments. You can elect short term disability at Annual Enrollment or when you are a new hire. You choose the waiting period for benefits, 15 or 30 days. You can receive this benefit until the earlier of:
| CURRENT COVERAGE ELECTED | AE COVERAGE ELECTED | EVIDENCE OF INSURABILITY REQUIRED |
|---|---|---|
| None | $100 or 1 unit | Not required |
| Any amount | Increase by $100/1 unit within same option* | Not required |
| None or any amount | Increase by $200/2 units or more within same option* | Required |
| Any amount or option | Change from 15 day waiting period option to 30 day waiting period option with or without an increase | Not Required |
| Any amount or option | Change from 15 day waiting period option to 30 day waiting period option with or without an increase | Required |
You can purchase short term disability coverage in $100 units of weekly benefits, not to exceed the lesser of:
You pay for coverage with after-tax deductions; short term disability benefits are not taxed when received.
| Age on January 1 of plan year | Monthly cost/$100 weekly benefit for benefits available after: | |
|---|---|---|
| 15 day waiting period | 30 day waiting period | |
| Up to 44 | $3.78 | $2.17 |
| 45 - 49 | $3.92 | $2.27 |
| 50 – 54 | $4.59 | $2.67 |
| 55 – 59 | $5.81 | $3.40 |
| 60 – 64 | $6.75 | $4.00 |
| 65+ | $7.29 | $4.25 |
Step 1: Determine the maximum number of $100 units you can purchase using the chart below
Step 2: Number of $100 units you wish to purchase ______
Multiplied by Monthly Cost x______
Equals monthly cost of coverage =______
| WEEKLY PAY BETWEEN | MAXIMUM $100 UNITS | |
|---|---|---|
| $167 | $333 | 1 |
| $334 | $499 | 2 |
| $500 | $666 | 3 |
| $667 | $833 | 4 |
| $834 | $999 | 5 |
| $1,000 | $1,166 | 6 |
| $1,167 | $1,333 | 7 |
| $1,334 | $1,499 | 8 |
| $1,500 | $1,666 | 9 |
| $1,667 | $1,833 | 10 |
| $1,834 | $1,999 | 11 |
| $2,000 | $2,166 | 12 |
| $2,167 | $2,333 | 13 |
| $2,334 | $2,499 | 14 |
| $2,500 | $2,666 | 15 |
| $2,667 | $2,833 | 16 |
| $2,833 | $2,999 | 17 |
| $3,000 | $3,166 | 18 |
| $3,167 | $3,333 | 19 |
| $3,334 | $3,499 | 20 |
| $3,500 | $3,500 | 21 |
| $3,667 | $3,833 | 22 |
| $3,834 | $3,999 | 23 |
| $4,000 | $4,166 | 24 |
| $4,167 or more | 25 | |
According to Dave Ramsey, 1 in 7 workers can expect to be disabled for 5 years or more. NKU has partnered with The Hartford to offer employees group rates for short term disability. What is short term disability insurance? It is a type of insurance that you can purchase to protect your income if you should be unable to work. NKU provides long term disability to help benefits eligible employees bridge the income gap after 6 consecutive months of absence, but do you have the ability to cover the gap for those first 6 months? Answer the following question to help you decide if short term disability insurance is right for you:
Do you have enough sick and vacation time saved to provide income during an absence of 6 months OR enough savings to draw from is you are unable to work to cover lost income and benefits payments? If no, you should consider purchasing short term disability.
If your claim is approved you will receive monthly income from The Hartford equal to 60 percent of your before-disability base pay not to exceed $10,000 monthly income. Your monthly LTD benefit may be reduced by other sources of income such as, but not limited to, Social Security Disability Income benefits for you and your dependents.
Monthly income will generally continue until you recover or become eligible for normal Social Security retirement.
Benefits Staff will work with you during your absence to determine if you should apply for LTD benefits and will assist you in the application process.
