Group Disability Income Insurance for CPhA Members
Benefits and Premiums Customized to meet your needs
Underwritten by The United States Life Insurance Company in the City of New York
“Stand-alone” OR “As a Complement”
This group coverage can be your sole, “stand-alone” disability insurance coverage.
Or, if you have some type of disability coverage through an employer, this plan can be used to complement it. That’s an approach some of our members take because these benefits are NOT taxable,* unlike most employer plans—and the coverage is 100 percent portable, provided you pay your premiums and remain a CPhA member.
*Consult your personal tax advisor for specific details.
As a California Pharmacists Association member, you are eligible to request coverage under this group plan if you are:
- A member in good standing
- Under age 60
- Actively Working Full-Time (at least 30 hours per week)
Not available in all states at this time. Contact the Administrator for current information.
Diagnostics: 3 Key Reasons You May Need Disability Coverage
1. Your income is substantial and your lifestyle is based on the assumption of that income stream
2. Your expenses are significant, including:
- children’s college education savings to fully fund
- retirement savings to fully fund
- monthly living expenses
- healthcare costs, insurance
- student loan debt
- office rent/maintenance
3. Your livelihood demands full use of your mind and body
Common Accidents & Medical Conditions That Could Result in “Disability”
- Motor Vehicle Accident
- Sports Injury
- Fall (ex: from ladder doing work around the home)
- Neuropathic Damage
- Degenerative Disc Disease
- Post-Traumatic Stress Disorder
- Depression, Anxiety Disorder
- Visual or Auditory Impairment
- Stroke, Heart Attack, Aneurysm
- Multiple Sclerosis, Parkinson’s Disease, ALS
CPhA Advantages—How This Plan Works
Your own occupation protection for the first 60 months of disability
As a pharmacist, your job is highly specialized. If you become totally disabled due to an injury or sickness and can’t perform the material duties of your regular job for the first 60 months, the plan will pay you monthly income benefits.
Your coverage is portable—you can take this plan with you anywhere you go**
Unlike other employer-paid or sponsored plans, you own your CPhA group coverage. It can go wherever you go, as long as you remain a CPhA member, you are under age 70, the group policy does not end, you continue to pay your premiums when due, you do not cease active work (except for reasons of total disability), and the CPhA remains a participating association. You don’t have to worry about losing your disability insurance simply because you change employers or if you strike out on your own as part of a pharmacy practice or as a sole pharmacist.
You pay group rates—typically a savings over individual coverage
This plan is only available to CPhA members and rates have been specifically negotiated on your behalf.
**Subject to policy terms and U.S. government regulations on restricted countries.
Group disability income insurance, underwritten by The United States Life Insurance Company in the City of New York, can help protect your income if you become totally disabled due to injury or sickness and unable to perform the material duties of your regular job. Our LTD program recognizes your regular job for the first 60 months of a total disability.
Choice of Plans
You can choose either the:
Two-Year Plan—provides benefits for total disability due to an injury or sickness for up to 2 years.
Long-Term Plan—provides benefits for total disability due to an injury or sickness up to your Normal Retirement Age (NRA.)
- if total disability begins prior to age 60 to NRA
- if total disability begins on or after age 60, but prior to age 64 to age 65
- if total disability begins on or after age 64, but prior to age 70 12 months
Choice of Benefit Amounts
If you are under age 50 on the effective date of coverage, you may apply for benefits up to $10,000 per month. If you are at least age 50, but under age 60 on the effective date of coverage, you may apply for up to $6,000 per month. The amount you choose cannot exceed 60% of your basic monthly pay. At age 65, the benefit amount is reduced by 50% of the amount in effect on the day before you attained age 65. The benefit amount remains level until coverage terminates at age 70. During this time (from ages 65 to 70), premiums remain level.
Choice of Waiting Period
You determine how long a waiting period you need between the date of disability and payment of benefits. Choose either a 90- or 180-day waiting period. If you elect the two-year plan, only the 90-day waiting period is available.
Definition of Total Disability—You will be considered totally disabled if you are completely unable to perform the material duties of your regular job during the waiting period and the next 60 months of a total disability. Your regular job is that which you were performing on the day before total disability began. After such 60-month period, you will be considered totally disabled if you are unable to perform the material duties of any gainful job for which you are reasonably fit by training, education or experience.
The total disability must be a result of an injury or sickness. To be considered totally disabled, you must also be under the regular care of a physician and not performing the duties of any gainful job.
Residual Disability Benefit—If you return to your regular occupation and sustain a loss of at least 25% of your predisability earned income, you may receive a residual disability benefit proportionate to your percentage of continuing income loss. For example, if you return to your work part-time and you sustain a loss of 1/3 of your monthly income, you may receive 1/3 of the monthly disability benefit. Residual disability benefits end the earlier of: the date you earn 75% or more of your Basic Monthly Pay, the date the monthly benefit payable is less than $100, or the end of the maximum benefit period described above for Total Disability.
Waiver of Premium—If you become totally disabled as defined by the group policy and receive monthly benefits for 6 continuous months, future premiums will be waived for as long as you are entitled to receive benefits. When you stop receiving monthly benefits premiums must again be paid when due.
Monthly Benefits To Be Paid For Mental, Nervous Or Emotional Disorders, Alcoholism and Drug Addiction—Disabilities due to nervous, mental or emotional disorders, alcoholism or drug addiction are covered for up to a maximum of 24 monthly benefits while such disability continues. After that, benefits will only be paid if you are an inpatient under a doctor’s care in a hospital or institution as a result of the disability, but not beyond the maximum benefit period.
Recurrent Disability—Disability due to the same or related cause, when separated by a return to active work for 3 or more continuous months, will be treated as a new claim, subject to a new waiting period and benefit period. If less than 3 months has passed, it will be treated as part of the original claim. Disability due to a different cause is automatically considered as a new claim.
Cost-of-Living Adjustment (COLA)
You may elect to have your monthly benefit amount adjusted on a compounded annual basis with changes in the cost of living. Adjustments will begin on the 25th month after your period of disability and the amount of adjustment will be one-half of the percentage change in the Consumer Price Index, or 6%, whichever is less. Annual increases will continue until the earliest of: 10 annual increases have been made; the end of your disability; or the end of the maximum benefit period.
This option pays you a lump sum equal to one-fourth of the monthly benefit amount received for each full month of total disability if you return to your regular occupation on a full-time basis after having received total disability benefits. Maximum payable is three months of the Monthly Benefit Amount. This benefit is not payable if residual disability benefits have been paid.
All members in good standing under age 60 are eligible to apply as long as they are actively at work on a full-time basis (at least 30 hours per week).
The insurance will take effect on the date United States Life approves the request, provided the required premium is paid. You must be actively at work on the date your insurance is to take effect. If not, the insurance will take effect on the day you resume such work.
Duration Of Benefits
After the waiting period, monthly benefits will be paid up to the maximum benefit period or your normal retirement age. The duration of this period is based on your attained age when you become disabled. The benefit will end on the date: you fail to give required proof of continuing total or residual disability; your total or residual disability ends; the maximum benefit period ends; or you die.
When Coverage Ends
Your coverage will terminate for any one of the following reasons: when you reach age 70; you cease to be a member of the Association; you are no longer working 30 hours per week for reasons other than total disability; you fail to pay premiums when due; the group policy ends; or the Association ceases to be a participating Association.
No monthly benefit will be paid for disability due to:
- intentionally self-inflicted injury;
- a war or an act of war;
- committing a crime or an attempt to do so;
- disability which commences during, or as a result of an injury or illness that occurs during full-time active duty in the armed forces of any country; or
- travel in, flight or getting in or out of: 1. an aircraft being used for testing or experimental purposes; or
2. an aircraft being piloted by the insured, or being flown for the purposes of pilot training; or
3. a military aircraft other than transport aircraft flown by the Military Airlift Command or similar transport service of another country.
Preexisting Conditions Limitation
Preexisting Condition means an injury or sickness for which the member:
a) incurred charges;
b) received medical treatment;
c) consulted a physician; or
d) took prescribed drugs within 12 months before becoming insured by this plan.
If total disability is due to a preexisting condition and it begins within 12 months of the date the member becomes insured by this plan, no benefits will be paid unless the member has not:
a) incurred charges;
b) received medical treatment;
c) consulted a physician; or
d) taken prescribed drugs for such condition, or any complication of it, for 12 continuous months, while insured.
Ways to Manage Your Premium
Disability insurance to help replace lost income can be a critical part of any sound financial planning for pharmacists. The CPhA Group Disability Income Insurance Plan is flexible, giving you options so you can easily customize coverage that best meets your income replacement needs with the benefit/premium configuration that’s tailored to your budget.
Start income benefit checks ASAP so you have an income stream quickly
Choose the 90-day waiting period
This approach is a good choice if your need for income is such that you do not want to use (or do not have) savings as a fallback at the start of your disability. Some pharmacists choose this option because they want to replace lost income starting as soon as possible.
Make your premium more economical by delaying the start of income checks
Choose a longer waiting period—as long as 6 months (180 days)
This approach is a good choice if you can wait for your benefit payments to begin, perhaps using your own savings in the interim. You’ll see that your premium is more economical because of the longer waiting period, so you can significantly reduce your cost of coverage if you select 180 days.
The United States Life Insurance Company in the City of New York
The underwriting risks, financial and contractual obligations and support functions associated with products issued by The United States Life Insurance Company in the City of New York (United States Life) are its responsibility.
The most prominent independent ratings agencies continue to recognize The United States Life Insurance Company in the City of New York in terms of insurer financial strength. For current insurer financial strength ratings, please consult the Web site at www.americangeneral.com/ratings.
The information above is a brief description of coverage provided under Group Policy No. G-216,173, Form No. G-19000 and is subject to the terms, conditions, limitations and exclusions of the policy. Please see the Certificate of Insurance for details. Plan may vary or may not be available in all states.