What if an injury or serious illness left you disabled and you could no longer work? Could you pay your rent, mortgage or your child’s tuition? Would you be able to cover expenses like food, utilities and clothing?
"Simply put, if you have a job, you most likely need disability insurance."*
Some firms cover employees for sick time, or short term disability, and some even provide basic long-term disability coverage, but most American workers aren’t prepared for a long term or permanent disability. †
Even if you have coverage through your employer, many employer plans only pay 30-40% of your salary. This may not be enough to cover your current obligations plus any additional medical co-pays and deductibles you may incur while disabled. In addition, you may not have the plan features and options you actually need.
The AICPA Long Term Disability (LTD) Income Plan, endorsed by the AICPA, is issued by The Prudential Insurance Company of America (Prudential). Besides getting lifetime benefits if you’re disabled before age 50, our Plan offers features not commonly found in employer- or government-sponsored plans such as:
- Higher benefit amounts: AICPA members can request up to $12,000 per month, up to 65% of their monthly earnings — and up to $5,000 a month is available without providing proof of earnings.*
- A “Your Occupation” Definition of Disability: This means you receive benefits if you are disabled and can’t perform the duties of your job—you won’t be forced into another line of work.
- Tax-free benefits: Under current Federal Income Tax rules, the monthly benefit is generally free from income tax because premiums are paid with after tax dollars (IRC Section 104). Benefits from some employer-provided plans are taxable, lowering your actual benefit amount.
- Coverage for total and partial disabilities depending on the Option you choose
- Keep your LTD coverage until age 70 as long as you are not on claim, even if you change jobs or retire as long as you maintain your membership.
- Benefits for life if you’re totally disabled before age 50; up to age 67 if you’re totally disabled at age 50-64; up to two years if you’re totally disabled at age 65-69.**
- No offsets to your benefits based on other benefits you may receive.
*If you go out on a claim and you are working part-time, then you will need to verify your earnings.
**The information within this material reflects the maximum duration of disability for Insureds who become disabled on or after January 1, 2015.