Department News MBA VEBA
Long-term Disability Coverage Provides Security for Individuals By Joyce Kennedy, Manager of Insurance Services
Work — it’s something we do every day. Whether performing duties at our bank or chores around our home, we have tasks we complete each day. What if something happened to us that prevented us from fulfilling these tasks? What happens if we are unable to work for a prolonged period? How would we support our families? Tese questions rarely cross our minds but must be asked.
Te Social Security Administration reports that 1 in 4 of today’s 20-year-olds will become disabled before reaching age 67. If you have 10 employees in your bank around this age, that means two of those employees could incur a disability that prevents them from working at some point in their careers. Even more alarming is that 67% of the private sector workforce has no long-term disability insurance, according to SSA.
Although many of our MBA member banks offer long-term disability coverage as a way to attract and retain their valued employees, not all disability plans are the same. A more commonly offered long-term disability plan in the marketplace is a plan known as an “any-occupation” plan. Tere also is a less common, more comprehensive long-term disability coverage known as an “own-occupation” plan. Definitions for the two types of plans follow.
• Own-Occupation An own-occupation long-term disability policy typically requires that the insured be unable to perform the material and substantial duties of his or her particular occupation (this type of policy is not as common today). Te disability need not render the claimant totally helpless; rather the claimant must be rendered unable to perform the material and substantial duties of his or her particular occupation.
• Any-Occupation Sometimes referred to as a general disability policy, these policies typically define disability in terms of the insured’s inability to engage in any gainful occupation that the insured is reasonably suited for based on his or her education, work experience and other individualized factors. Tese policies typically provide benefits under an own- occupation clause for the first two years of disability and benefits under an any-occupation clause thereaſter.
If you are an MBA member bank looking to offer a great economical long-term disability plan or looking to offer a more comprehensive coverage as a way to build your employee benefits package offering, MBA VEBA can assist. MBA VEBA’s most popular coverage is its own-occupation plan.
Both of MBA VEBA’s long-term disability plans include a worldwide travel assistance program (for business or pleasure travel 100 or more miles from home) and an employee assistance type program at no additional cost.
For eligible MBA VEBA members, having long-term disability coverage can provide a sense of security during a time of uncertainty. Please visit the MBA VEBA website at mobankers. com for additional information or contact Lesley Weaver at
lweaver@mobankers.com or Joyce Kennedy at jkennedy@
mobankers.com.
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