Iowa State and Principal Financial Group worked together to allow Iowa State employees to voluntarily enroll in long-term individual disability income insurance.
The new changes will be introduced this academic school year. The current standard long-term disability coverage policy covers a part of pre-disability salary and taxes. Those taxes reduce the payment for those who are enrolled. It is paid monthly and pays 63 percent of the budgeted salary of an employee. The maximum is $10,000 per month.
Iowa State employees have the opportunity to apply for the long term disability insurance during their first year of employment during the benefits enrollment period or during the open change period.
“Long-term disability has been offered for many years; what we have recently offered is a voluntary individual disability insurance option," said Edward Holland, University Human Resources director.
Holland said the insurance is not focused on the type of disability, but on the determination of whether the employee can work due to their disabling injury or illness.
The new disability income coverage allows recipients to increase on monthly payments and increases the amount of the recipients' prior salary.
The coverage is not subsidized by Iowa State, meaning the premiums cannot be paid with automatic payments through Iowa State payroll deductions for coverage.
Personalized premiums vary depending on the recipients' salary, coverage and other factors. Personalized premiums allow negotiable discount for employees. The payments must be paid to Principal Financial Group. The University Human Resources website stated premium policies can be paid in full by Iowa State after one full year of continuous and active employment.
The policy may continue even if the employee is no longer employed at Iowa State. Employees can make adjustments or cancel their policy at any time; however, insurability validation will be required. Benefit payments can be arranged with primary and dependents' social security and workers’ compensation benefits.
Principal Financial Group also offers several other plans, such as long-term disability and life insurance, to Iowa State employees.
“Long-term disability insurance coverage helps [employees] replace more of their income if they can't work due to a disabling illness or injury," Holland said. "Plus, they are able to take the individual policy with them wherever their career takes them."
Principal Financial Group representatives will be holding an informational session soon on campus for employees who are interested in applying. There is currently no set date for the event.
Employees who are interested in applying for long-term disability income insurance or have questions can contact Rick Cordaro by phone at (800-210-5529 ext. 1) or email at firstname.lastname@example.org.