Participant Rights and Responsibilities Upon Transfer or Termination
Long-Term Disability (LTD) Coverage
Indiana University provides the opportunity for employees to purchase optional Long-Term Disability Insurance. The benefit pays a regular income when an employee is totally disabled and cannot work. The plan includes an optional Retirement Protection Benefit that provides for contributions to a Retirement Annuity while the employee is disabled. The employee may choose between benefits that start after 90 days or 180 days of total disability. Premiums are based on age, salary, and the coverage option selected.
All full-time Academic and Staff employees are eligible to purchase Long-Term Disability Insurance.
Participation by the employee in Long-Term Disability Insurance ends on the date that the employee:
- terminates from the university; or
- ceases to be a member of the eligible class for coverage; or
- ceases to make any required contributions.
If coverage ceases, it will not affect benefits for a disability existing on or before that date.
When Disability Insurance ceases under the group policy due to termination of employment with the university or transfer to an ineligible class, coverage may be converted to an individual policy without providing proof of good health. A conversion policy only includes the monthly income benefit. Conversion coverage is only available if the following conditions have been met:
- The employee must have been insured under the group policy for at least 12 continuous months. These months must directly precede the date the employee's insurance ceases.
- The employee's insurance must not be ceasing because of retirement.
- The employee must not be disabled under this policy.
- The employee must apply for insurance under the conversion policy and pay the first premium within 31 days after group coverage ends.
- The employee cannot be eligible for coverage under another employer's Group Total Disability Benefits policy within 31 days of the termination of insurance under the IU-sponsored LTD policy.
Summary of actions the participant must take to convert to an individual policy:
- Return the conversion offer application to the address listed on the letter received from the policy underwriter. If a conversion offer is not received from the policy underwriter, contact University Human Resource Services at (812) 855-2007. In either case, the form must be submitted to the policy underwriter within 31 days after the date on which group coverage terminates.
- Complete the conversion application within 31 days of the date that group coverage terminates or from the date on which conversion application materials are received. The University Human Resource Services office will complete the employer portion of the application upon your request.
- Pay subsequent premium payments on time.
- Notify the policy underwriter of beneficiary changes.
- Notify the policy underwriter of address and name changes.
To obtain information on converting Long-Term Disability Insurance to an individual policy, contact University Human Resource Services at (812) 855-2007.