Disability Income Insurance

Disability Income Insurance  

Overview

Insure Your Income -- Your Most Valuable Asset

Your most important asset is your ability to earn income. Even if you are young and healthy, a serious illness or injury could put you out of work for months or even years — thus jeopardizing your livelihood. A reliable source of disability income protection is this Group Disability Income Insurance Plan exclusively for AAJ members.
 

Even if you have some disability insurance through your employer, or if you are self-employed, it may not be enough. Many employers provide only a short-term salary continuation plan or short-term disability income plan. This Plan can be used to supplement benefits provided by your employer plan or as primary protection. This Plan is designed to provide you with a regular monthly income when you are totally disabled and unable to work as the result of an illness or injury.

 

How to Apply

  1. Complete the enclosed Application Form. It is extremely important that you answer fully the questions about medical history on this form. New York Life will rely upon your answers, and failure to provide complete and truthful information may invalidate coverage. Please note that New York Life retains the right to request additional medical information and may contact you directly.
  2. Make your check for the cost of insurance requested payable to:
    Administrator
    AAJ Group Insurance Program

    If you choose the Electronic Funds Transfer (EFT) Option, be sure to include a voided check in addition to the check for the first payment due.
  3. Mail the Application Form together with your check in the postage-paid envelope provided or to this address:
    AAJ Group Insurance Program
    P.O. BOX 10374
    Des Moines, IA 50306-8812

    Residents of Puerto Rico:
    Please send your completed application and check for the initial premium to:
    Global Insurance Agency, Inc.
    P.O. Box 9023918
    San Juan, PR 00902-3918
Insurance Application And Brochure

These form(s) are in Adobe Acrobat Reader (PDF) format and are available for downloading and printing.

Tell me more

Eligibility

AAJ members, under age 65 who are at FULL–TIME WORK are eligible to request coverage.

"FULL–TIME WORK" means the active performance of the regular duties of your normal occupation for pay or profit on the basis of at least 30 hours per week at the place such duties are performed.

This coverage is only available for residents of the United States (except AK, DE, FL, LA, ME, MD, MO, MT, NH, NV, NC, OH, OR, SD, TX, UT, VT, WA, WY and territories) and Puerto Rico.

 

Basic Monthly Pay

Basic monthly income means your monthly rate of pay from your employer. Such rate will be that in effect on the day before total disability begins. "Basic monthly income" includes commissions but not bonuses, overtime pay, or other extra compensation. For members who are self-employed, basic monthly income means the average Net Monthly income from the personal practice of your profession. “Net income” excludes investment returns, rents, royalties, and similar income not directly produced by your occupation.

 

Helps Protect You as a Trial Lawyer

You will be considered totally disabled, during the waiting period and next 60 months, if due to Injury or Sickness, you are completely unable to perform the material duties of your specialty.
 

After the initial 60 month period, total disability is defined as the complete inability to perform the material duties of any occupation for which you may qualify based on your education, training or experience (not specifically within your specialty).
 

You must be under the regular care of a physician (other than yourself) and must not be engaged in the full-time practice of law.
 

You may be considered Totally Disabled if: (1) You are confined to an institution for medical care, at a doctor’s orders, to treat a sickness, disease, or bodily injury; or 2) You are confined to bed, at a doctor’s orders, to treat a sickness, disease, or bodily injury: or (3) Your condition is inherently disabling given the demands of your occupation, as with total loss of speech, hearing, or sight; as a result of any or all of the foregoing conditions or other total disabling conditions, you would not be able to appear at your office, or at depositions, or at court, even though you may be able to negotiate settlements or consult on cases being handled by others.

 

Covered Total Disability

The insurance plan pays monthly benefits if you are Totally Disabled. Benefits begin at the end of the waiting period, provided you are Totally Disabled.

"Totally Disabled" is defined as an incapacity from an illness or injury that you suffer while insured under the Policy, but only if such incapacity continuously prevents you from doing the material and substantial duties necessary to perform your occupation.


To be considered Totally Disabled, you must not be engaged in any gainful occupation.
 

Choice of Plans

You can choose either the Short-Term Plan or the Career Plan. The maximum monthly coverage amounts for which members may apply according to age are:

For Disability Beginning Career Plan Short-Term Plan
Before age 50 $10,000 $5,000
Age 50–54 $4,000 $4,000
Age 55-59 $3,000 $3,000
Age 60-64 $2,000 $2,000

 

The Short Term Plan

Benefits are payable on the 31st day after the onset of your total disability and continue for the next 12 months of your total disability. The Plan is designed to give maximum monthly benefits for the more frequent, shorter periods of disability.


You may apply from $500 up to $5,000 in monthly benefits (in $100 increments), but not to exceed 60% of your basic monthly income.

The Career Plan

Benefits are payable beginning with either the 91st day of 181st day of your total disability, depending on your choice, and may continue to age 65 if disability begins prior to age 64, or for two years, but not beyond age 70 if you are disabled on or after age 64. The Plan is designed to help protect you financially during prolonged disability.


You may apply from $500 to $10,000 in monthly benefits (in $100 increments), but not to exceed 60% of your basic monthly income. The following chart shows the maximum duration of the benefit payment periods under the AAJ Career Plan:
 

If your disability begins... Monthly benefits continue...*
Prior to Age 64 Up to Age 65
On or After Age 64 Up to Two Years, but not beyond Age 70



Monthly benefits will be paid up to the maximum benefit period selected. Monthly benefits under either plan will end on the date you fail to give required proof of continuing total disability, your total disability ends, the maximum benefit period ends or you die.
 

Reduction on Account of Other Income Benefits

If the monthly benefit paid under the plan plus income benefits you received from other sources (as listed in the group policy) exceeds 70% of your basic monthly income (60% of your basic monthly income for the Career Plan), then the monthly benefits to be paid under this plan will be reduced by the amount by which the total income benefit exceeds 70% (60% for the Career Plan).
 

Waiver of Premium

After six continuous months of covered total disability, premiums due thereafter will be waived during the remainder of the disability. When you stop receiving monthly benefits, premiums must again be paid when due.
 

Benefits for Recurring Disability

Successive periods of disability, which are due to the same or related causes, will be considered a single period of disability unless separated by return to FULL–TIME WORK for six consecutive months or more (three continuous months for the Career Plan). Separate, unrelated periods of disability will be considered a single period of disability unless separated by a return to FULL-TIME WORK of at least one full day.

Residual Disability Benefits (Career Plan Only)

You may be eligible for Residual Disability Benefits if you return to work immediately following a period of total disability for which monthly benefits were payable, provided that your current average earnings do not exceed 80% of your pre-disability income. Residual disability means you are engaged in a gainful occupation but are not able to perform, due to the same injury or sickness that caused total disability, one or more of the substantial and material duties of your occupation, or the substantial and material duties of your occupation for as much time as is normally required to perform them. You must be under the regular care of a Physician unless it is determined continued care is of no benefit.


The monthly residual disability benefit payable is determined each month by a formula based on loss of monthly income over prior basic monthly income times the monthly benefit that would be payable for a total disability.

 

Survivor Income Benefit (Career Plan Only)

If you should die while totally disabled after having received the Total Disability Benefit provided by the Group Policy for at least 12 continuous months and during a period for which benefits are payable, the Plan will pay your designated beneficiary, if living, a Survivor Benefit. This benefit is equal to the Monthly Benefit you were last entitled to receive for the month prior to your death.


The Survivor Income Benefit shall be payable on a monthly basis immediately after we receive written proof of your death. The benefit will end on the earliest to occur: 1) 3 monthly payments have been made to the beneficiary; 2) the end of the Maximum Period Payable; or 3) the death of the designated beneficiary.

 

ADDITIONAL PLAN INFORMATION

Effective Date

Insurance for the Disability Income Plan becomes effective on the first of the month after the date the application is approved by New York Life Insurance Company, provided the first premium has been paid. You must be actively at work on the date the insurance is to take effect. If not, insurance will take effect on the day you resume such work.

 

When Coverage Ends

Your coverage can be automatically renewed until age 70, as long as the Group Policy remains in force, you pay your premium when due, you remain an AAJ member, insurance does not end for your class, you remain actively working except for reasons of total disability and you remain a resident of the United States.

 

Exclusions And Limitations

Benefits are not payable during the waiting period applicable to the Plan selected; nor for disabilities due to war or an act of war; military service; intentionally self-inflicted injury; pregnancy or any termination of pregnancy (complications of pregnancy are covered); or any condition which is the subject of a waiver or impairment rider.


Benefits for Mental, Nervous or Emotional Disorders, Alcoholism and Drug Addition are limited to a maximum of 24 monthly benefits (6 months for the short-term plan) that will be paid while such disability continues, unless hospital confined at the end of the 24-month period (6 months for the short-term plan). For a disability that starts on or after the insured's 65th birthday, the maximum monthly benefit is $500.

 

Pre-Existing Conditions (Short-Term Plan Only)

No benefits will be paid for any disability which is a result of a pre-existing condition. A pre-existing condition is an injury or sickness for which a person incurred charges, received medical treatment, consulted a physician or took prescribed drugs during the 12 months immediately before the insured's Effective Date of Insurance. If disability is due to a pre-existing conditiion and it begins within 24 months of the insured's Effective Date of Insurance, no benefits will be paid unless the person has not incurred charges, received medical treatment, consulted a physician, or taken prescription drugs for such condition, or any complication of it, for 12 continuous months, while insured.

 

YOUR COST

Competitive Current 2020 Semiannual Group Rates

 

The Short Term Plan

Available in $100 units from $500 to $5,000, depending on earnings and age. Benefits are payable from the 31st day of disability for up to a period of 12 months.

 

Short Term Plan Semiannual Premiums
Per $100-30 days Benefit Unit

Under 30 $1.08
30-34 $1.39
35-39 $1.85
40-44 $2.26
45-49 $3.81
50-54 $6.17
55-59 $11.31
60-64 $17.90
65-69* $21.34

 

The Career Plan

Available in $100 units from $500 up to $10,000, depending on earnings and age. Benefits are payable from either the 91st day or the 181st day of disability for either (1) to age 65, or (2) for two years, but not beyond age 70, depending on on age when disability commences.

 

Career Plan Semiannual Premiums
Per $100 Monthly Benefit Unit

 

Age 90-Day Waiting Period 180-Day Waiting Period
Under 30 $2.76 $2.38
30-34 $4.37 $3.45
35-39 $5.97 $4.89
40-44 $7.58 $6.38
45-49 $11.18 $9.83
50-54 $15.70 $13.61
55-59 $17.31 $14.82
60-69* $18.92 $16.03

 

*Renewal rates only. Other those under age 65 may apply. Insurance terminates at age 70.

 

If applicable, an additional $2 billing fee will be included on your billing notice payable to the administrator. To save the fee, select Electronic Funds Transfer (EFT) as a safe and secure payment option.

 

Premiums are based on the member's age on the effective date of insurance. Premiums increase on the policy anniversary date coinciding with or next following the member's reaching a new age bracket. The insurance company reserves the right to change premiums only on a class wide basis. For disabilities commencing on or after your 65th birthday, the maximum monthly benefit is $500.

 

30-DAY FREE LOOK

When you become insured, you will be sent a Certificate of Insurance, summarizing your coverage. This website is only a brief description of some of the plan’s principal provisions and features. The complete terms are set forth in the group policy issued by New York Life Insurance Company to the Trustees of the American Association for Justice.

If you’re not completely satisfied with the terms of your Certificate of Insurance, you may return it, without claim, within 30 days. Your coverage will be invalidated, and you will be sent a full refund, no questions asked!
 

What Your Participation Means to AAJ

By participating in the AAJ Group Insurance Program, you can help support AAJ activities. When the AAJ Group Insurance Trust was established in 1975, its purpose was to provide insurance for our members and to create a source of funds to support the charitable, research, and educational activities that are so important to our profession. As a participating member, you have an annual option to request the return of your proportionate share of the group policy claims experience refund, if any, paid to the AAJ Group Insurance Trust. Your unclaimed share will remain with the Trust.

Contact Us

We're here to help! Please contact us in whatever manner is most convenient for you.

 

Administered by:

 Address
Mercer Consumer
12421 Meredith Drive
Urbandale, IA 50398
 Phone
1-800-482-2852
 Hours
 M-F 7a-5p, Sat 8a-1p CT
 Email
customerservice.service@mercer.com

Underwritten by:

 Address
New York Life Insurance Company
51 Madison Avenue
New York, NY 10010

Under Group Policy No. G-30703-0 on
Policy Form GMR-FACE/G-30703-0.
 Website
http://www.mercer-web.com/products/nyl/nyl.html

Rating Agencies Disclaimer
  • IMPORTANT NOTICE

    How New York Life Insurance Company Obtains Information and Underwrites Your Request for Group Disability Income Insurance.

    In this notice, references to "you" and "your" include any person proposed for insurance. Information regarding insurability will be treated as confidential. In considering whether the person(s) in your request for insurance qualify for insurance, we will rely on the medical information you provide, and on the information you AUTHORIZE us to obtain from your physician, other medical practitioners and facilities, other insurance companies to which you have applied for insurance and MIB, Inc. ("MIB"). MIB is a not-for-profit organization of insurance companies, which operates an information exchange on behalf of its members. If you apply for life or health insurance coverage or a claim for benefits is submitted to an MIB member company, medical or non-medical information may be given to MIB and such information may then be furnished by MIB, upon request, to a member company.

    Your AUTHORIZATION may be used for a period of 24 months from the date you signed the application for insurance, unless sooner revoked. The AUTHORIZATION may be revoked at any time by notifying New York Life in writing at the address provided. Your revocation will not be effective to the extent New York Life or any other person already has disclosed or collected information or taken other action in reliance on it, or to the extent that New York Life has a legal right to contest a claim under an insurance certificate or the certificate itself. The information New York Life obtains through your AUTHORIZATION may become subject to further disclosure. For example, New York Life may be required to provide it to insurance, regulatory or other government agencies. In this case, the information may no longer be protected by the rules governing your AUTHORIZATION.

    MIB and other insurance companies may also furnish New York Life, its subsidiaries or the Plan Administrator with non-medical information (such as driving records, past convictions, hazardous sport or aviation activity, use of alcohol or drugs, and other application for insurance). The information provided may include information that may predate the time frame stated on the medical questions section, if any, on this application. This information may be used during the underwriting and claims processes, where permitted by law.

    New York Life may release this information to the Plan Administrator, other insurance companies to which you may apply for life and health insurance, or to which a claim for benefits may be submitted and to others whom you authorize in writing. However, this will not be done in connection with test results conceiving Acquired Immune Deficiency Syndrome (AIDS) or Human Immunodeficiency Virus (HIV). We may also make a brief report of your protected health information to MIB, but will not disclose our underwriting decision.

    New York Life will not disclose such information to anyone except those you authorize or where required or permitted by law. Information in our files may be seen by New York Life and Plan Administrator employees, but only on a "need to know" basis in considering your request. Upon receipt of all requested information, we will make a determination as to whether your request for insurance can be approved.

    If we cannot provide the coverage you requested, we will tell you why. If you feel our information is inaccurate, you will be given a chance to correct or complete the information in our files. Upon written request to New York Life Insurance or MIB, you will be provided with non-medical information. Generally, medical information will be given either directly to the proposed insured or to a medical professional designated by the proposed insured. Your request is handled in accordance with the Federal Fair Credit Reporting Act procedures. If you question the accuracy of the information provided by MIB, you may contact MIB and seek a correction. MIB’s information office is MIB, Inc., 50 Braintree Hill Park, Suite 400, Braintree, MA 02184-8734, telephone 1-866-692-6901 (TTY 1-866-346-3642).

    For NM residents: PROTECTED PERSONS1 have a right of access to certain CONFIDENTIAL ABUSE INFORMATION2 we maintain in our files and they may choose to receive such information directly. You have the right to register as a PROTECTED PERSON by sending a signed request to the Administrator at the address listed on the application. Please include your full name, date of birth and address.

     

    1PROTECTED PERSON means a victim of domestic abuse: who has notified us that he/she is or has been a victim of domestic abuse; and who is an insured or prospective insured person.

     

    2CONFIDENTIAL ABUSE INFORMATION means information about: acts of domestic abuse or abuse status; the work or home address or telephone number of a victim of domestic abuse; or the status of an applicant or insured family member, employer or associate of a victim of domestic abuse or a person with whom the applicant or insured is known to have a direct, close, personal, family or abuse-related relationship.

     

    New York Life Insurance Company


    8/12 ed.

FAQs

Answers about the plan, including eligibility, options, enrollment, customer service and more.
  • By whom is this plan underwritten?

    Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 under Group Policy No. G-30703-0 on Policy Form GMR -FACE/G-30703-0.

     

    New York Life is licensed/authorized to transact business in all of the 50 United States, the District of Columbia and Puerto Rico. However, not all group plans it underwrites are available in all jurisdictions. Please check the applicable insurance brochures for current availability.

     

    New York Life’s state of domicile is New York, and NAIC ID # is 66915.

  • How much disability income insurance should I consider?

    This depends on a number of factors including: the disability benefits that you may receive from your employer, the amount of private disability income insurance you may have in force, plus the household income that will continue during your disability.
  • Who is eligible for this insurance?

    AAJ members, under age 65 who are at FULL-TIME WORK are eligible to request coverage.
     

    "FULL-TIME WORK" means the active performance of the regular duties of your normal occupation for pay or profit on the basis of at least 30 hours per week at the place such duties are performed. This coverage is available only for residents of the United States (except AK, DE, FL, LA, ME, MD, MO, MT, NH, NV, NC, OH, OR, SD, TX, UT, VT, WA, WY and territories) and Puerto Rico.

  • What are my benefit options?

    For the Short Term Plan, you have a choice of benefit options from $500 to $5,000 (in $100 increments), but not to exceed 60% of your basic monthly income.
     

    For the Career Plan, you have a choice of benefit options from $500 to $10,000 (in $100 increments), but not to exceed 60% of your basic monthly income.

  • What is the waiting period?

    For the Short-Term Plan, benefits are payable on the 31st day after the onset of your total disability.
     

    For the Career Plan, you have a choice of two waiting period before benefit payments begin: 90 or 180 days.
     

    A waiting period is the number of consecutive days that you must be disabled before benefits commence.

  • What disabilities are covered?

    A Covered Disability is a Covered Total Disability and/or Covered Residual Disability, if such disability is not excluded in the Exclusions section. See Plan Details for more information.
  • When is the coverage effective?

    Insurance for the Disability Income Plan becomes effective on the first of the month after the date the application is approved by New York Life Insurance Company, provided the first premium has been paid. You must be actively at work on the date the insurance is to take effect. If not, insurance will take effect on the day you resume such work.
  • When does the coverage end?

    Your coverage can be automatically renewed until age 70, as long as the Group Policy remains in force, you pay your premium when due, you remain an AAJ member, insurance does not end for your class, you remain actively working except for reasons of total disability and you remain a resident of the United States.
  • What if I have second thoughts after I apply?

    When you become insured, you will be sent a Certificate of Insurance summarizing your benefits under the Plan. If you are not completely satisfied with the terms of your Certificate of Insurance, you may return it, without claim, within 30 days. Your coverage will be invalidated and you will be sent a full refund—no questions asked!

The AAJ Insurance Trust incurs costs in connection with this sponsored Program. To provide and maintain this valuable membership benefit, it is reimbursed for these costs. The AAJ also receives a fee for the license of its name and logo for use in connection with this Plan.

 

Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 under Group Policy No. G-30703-0 on Policy Form GMR -FACE/G-30703-0.

 

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Mercer's Role & Compensation

Details of Mercer disclosure of the compensation.