Facts that May Surprise You
The odds of disability are about twice that of death.
Prior to age 65, for periods of disability lasting 90+ days
National Association of Insurance Commissioners (NAIC) Individual Disability Table A (1985); Statistical Abstract of the United States
When a person is unfit to work for health reasons, no employer can continue to pay them indefinitely. Financially, the Local needs to get them off the payroll but doing this is hard because compassion, employee relations, and legal risk all favor doing whatever the employee wants. By transferring payroll obligations to an insurer, employees have choices without being a payroll cost.
Eligible classes include Business Representatives and Staff working 25+ hours per week.
As a true group offering, no medical underwriting or employee action is required.
Life insurance may be converted to an individual policy.
Disability coverage is not portable, however an add-on program is available to provide that.
for the full Benefit Period
Full Own-Occupation Definition of Disability
The Group Life & Disability program for IBEW Locals has a 66.6% benefit, among the highest available anywhere. The benefit is subject to formulaic adjustments and offsets, typical of any LTD plan. Benefits begin after 90 days and the maximum Benefit Period is Social Security Normal Retirement Age, with some extension for older age workers.
The definition of disability is “Own Occupation” for the full Benefit Period, meaning it doesn’t matter if a worker can do something else as long as they are disabled from their own occupation.
That the definition of disability does not change part way through a claim is what makes the program unique.
$100,000 Life Insurance
A flat $100,000 of life insurance is provided to each member. An additional $100,000 is provided through the Accidental Death & Dismemberment (AD&D) benefit.
The current monthly cost is .71% of payroll plus $38.60 per head.
A worker earning $5,000 per month would cost:
$5,000 x .71% = $35.50
+ flat amount $38.60
Total monthly cost: $74.10
Premiums are a business expense and not included in employee taxable income.
At this point there is no stated minimum number of lives a Local must have in order to join.
This is a true group offering. As such, everyone within a respective Local (that works 25+ hours per week) must be covered for life and disability as a package. If you prefer a more flexible approach (e.g., unbundled, voluntary, or employee paid) and are willing to forgo the IBEW special deal for underwriting and benefits, please inquire.
Each Local is billed separately and can control its own volume and edit billing online.
To get started, please provide an employee census. A census provides earnings volume and demographic information to cover the respective employees and bill the Local for the reported volume.