BJA | NRLCA Long Term Disability & Term Life Insurance

Frequently Asked Questions

Voluntary Long-Term Disability (VLTD) Insurance

Do I need disability insurance?
Am I eligible for VLTD Coverage?
When does my VLTD coverage go into effect?
Will I need to answer health questions for VLTD coverage?
When am I considered disabled?
When will my disability benefits begin?
How much is the VLTD benefit amount?
How long are VLTD benefits payable?
When do VLTD benefits end?
How do I file a disability claim?
Can I make changes to my VLTD coverage?

Voluntary Term Life (VTL) Insurance

Do I need life insurance?
Am I eligible for VTL coverage?
When does my VTL coverage go into effect?
Will I need to answer health questions for VTL coverage?
How do I file a life claim?
Can I make changes to my VTL coverage?

Voluntary Long-Term Disability (VLTD) Insurance

Do I need disability insurance?
What would happen if you became disabled and couldn’t work? How long would you be able to pay your mortgage or rent, car payment and everyday living expenses? Today, many people neglect to financially protect themselves from the devastating impact of a long-term disability. Voluntary long-term disability (VLTD) insurance from United of Omaha, a Mutual of Omaha Company, pays you cash benefits when you’re sick or hurt and can’t work.

Am I eligible for VLTD Coverage?
To be eligible for VLTD coverage, you must be an active member of the National Rural Letter Carriers’ Association, working 20 hours per week, and able to perform all normal duties of your job.

Dependent insurance (for your spouse and/or children) may also be available, but only when you, as the member, also select coverage for yourself.

When does my VLTD coverage go into effect?
The effective date of the VLTD coverage for members currently enrolled in the VLTD program is February 1, 2009. For all others, the effective date of coverage is May 1, 2009.

Will I need to answer health questions for VLTD coverage?
If you do not enroll on or before the end of your initial enrollment period and wish to apply for coverage at a later date, evidence of insurability will be required. Your coverage will be effective the first day of the month coinciding or following the date United of Omaha approves the coverage.

When am I considered disabled?
Disability and disabled mean that because of an injury or illness, a significant change in your mental or functional abilities has occurred, for which you are:

Prevented from performing at least one of the material duties of your regular occupation during the first 2 years of disability and after 2 years are unable to perform all of the material duties of any gainful occupation; and
During the first 2 years of disability are unable to generate current earnings which exceed 80% of your monthly earnings from your regular occupation, and after 2 years are unable to generate current earnings which exceed 60% of your monthly earnings from any gainful occupation.

When will my disability benefits begin?
If you become disabled, your VLTD benefits become payable after you have been continually disabled for:

Option 1: 60 days
Option 2: 90 days

How much is the VLTD benefit amount?
Your benefit is equivalent to either 50% or 60% of your before-tax monthly earnings, not to exceed the plan’s maximum monthly benefit amount, less other income sources.

Maximum Monthly VLTD Benefit
Option 1: $3,500
Option 2: $8,000

Minimum Monthly VLTD Benefit
Option 1: $100
Option 2: $100

How long are VLTD benefits payable?
If you become disabled prior to age 62, benefits are payable to age 65 – your Social Security Normal Retirement Age. At age 62 (and older), the benefit period will be based on a reduced duration schedule.

When do VLTD benefits end?
Coverage for you ends on the earliest of:

The date the policy or plan is cancelled;
The date you are no longer in an eligible group;
The date your eligible group is no longer covered;
The last day of the period for which you made any required contributions;
The last day you are actively employed;
The day before you enter the armed forces on active duty; or
The day you do not satisfy any other eligibility conditions as described in your certificate

How do I file a disability claim?
Go to mutualofomaha.com, then select the state you reside in and locate the form called Long-Term Disability Claim Form Mutual and United.

Can I make changes to my VLTD coverage?
If you experience a family status change during the year, you may be able to increase your coverage or add a dependent without evidence of insurability - if your request is received within 60 days of the family status change. If your request is submitted more than 60 days from the date of the family status change, you will be required to submit evidence of insurability (answer health questions).

In most cases, you may only increase your coverage or add dependent coverage if the increase or addition is consistent with the family status change.

Voluntary Term Life (VTL) Insurance

Do I need life insurance?
Whether you’re single, married, have children or are close to retirement, having life insurance is a must. Voluntary term life (VTL) insurance provides the security loved ones need to get through the financial hardships that may accompany the death of an income earner.

When determining how much life insurance you need, think about the expenses you may encounter through every stage of your life. Insurance professionals recommend carrying life insurance equal to four or five times household income.

However, since everyone’s needs are different, it’s important to assess your personal situation and specific needs.

Am I eligible for VTL coverage?
To be eligible for VTL coverage, you must be an active member of the National Rural Letter Carriers’ Association, working 20 hours per week, and able to perform all normal duties of your job.

Dependent insurance (for your spouse and/or children) may also be available, but only when you, as the member, also select coverage for yourself.

When does my VTL coverage go into effect?
The effective date of the coverage for members currently enrolled in the VTL program is February 1, 2009. For all others, the effective date of coverage is May 1, 2009.

If you enroll for coverage over the Guarantee Issue amount, you are required to submit evidence of insurability (answer health questions). Your coverage is effective the first day of the month coinciding or following the date United of Omaha approves the coverage.

Will I need to answer health questions for VTL coverage?
If you enroll for coverage over the Guarantee Issue amount, you will need to provide evidence of insurability (answer health questions). Guarantee Issue Amounts are as follows:

Member: $100,000
Spouse: $50,000
Child(ren): $10,000

If you do not enroll on or before the end of your initial enrollment period and wish to apply for coverage at a later date, evidence of insurability will be required. Your coverage will be effective the first day of the month coinciding or following the date United of Omaha approves the coverage.

How do I file a life claim?
Go to mutualofomaha.com, select the state you reside in and locate the Life Claim Form.

Can I make changes to my VTL coverage?
If you experience a family status change during the year, you may be able to increase your coverage or add dependent coverage up to the Guarantee Issue amount(s) without evidence of insurability. In most cases, you may only increase your coverage or add dependent coverage if the increase or addition is consistent with the family status change.