AIG Benefit Solutions introduced the Income PLUS rider benefit to its Group Long-Term Disability Insurance that provides a one-time, lump-sum payment in the event of a disabling condition.
The Income PLUS benefit is unique in the industry as a lump-sum benefit that is not offset or negated by any other sources of income, and is paid in addition to the monthly benefits offered under the long-term disability product. The Income PLUS benefit can be used by employees as they see fit to help pay debt or medical bills or to provide a financial cushion during a period of disability.
The Income PLUS rider benefit is payable immediately after the 180-day elimination period is satisfied. It offers what amounts to 12 months' worth of benefit at 10 to 40 percent of income, paid as a lump sum in addition to the monthly LTD payments. The percentage paid under the Income PLUS rider varies according to the rider option selected by the employer.
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The total income replacement maximum available to employees is 80 percent, including the underlying LTD plan and the Income PLUS rider benefit. For example, if the underlying long-term disability plan offers 60 percent income replacement, then the Income PLUS Rider options are 10 or 20 percent.
According to the Council For Disability Awareness, the average long-term disability claim duration is 31.2 months, and one in eight workers will be disabled for five years or more during their working careers. Sixty-five percent of working Americans say they could not cover normal living expenses even for a year if their employment income was lost; 38 percent could not pay their bills for more than three months.
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