Long Term Disability Family Care Reimbursement Benefit
Author: Lincoln Financial Group
Synopsis and Key Points:
Introduction of a Family Care Reimbursement Benefit rider on its group long-term disability insurance product.
Main DigestLincoln Financial Group today announced the introduction of a Family Care Reimbursement Benefit rider on its group long-term disability insurance product.
Lincoln Financial Group Announces Family Care Reimbursement Benefit Rider on LTD Policies.
Lincoln Financial Group today announced the introduction of a Family Care Reimbursement Benefit rider on its group long-term disability insurance product. Lincoln already offers one of the most generous LTD policies on the market and - with the addition of this optional benefit - employers now have another solution to help partially disabled insureds overcome family care cost concerns as they try to return to work.
"Lincoln recognizes that there are often more than just physical challenges facing an insured during the transition back to work," said Bob Risk, Senior Vice President, Group Sales. "Lincoln's new Family Care Reimbursement Benefit rider helps remove the barrier of increased dependent care costs faced by partially disabled workers."
During this period of partial disability, insureds (including those who are part of the "sandwich generation" - caring for young children and/or elderly parents) often face additional concerns. They may need to find and pay for child care, or care for a spouse or elder parents who are incapable of living on their own. In fact, one out of eight Americans age 40-60 is raising a child and caring for a parent at home(1). For those also affected by disability, the cost of dependent care can be a serious concern.
"The Family Care Reimbursement Benefit was designed to help employees who find themselves in a disabling situation, but are still expected to care for their family members," said Risk. "It provides an additional reimbursement opportunity to an insured who is transitioning back to work after a period of disability, to help offset dependent care costs."
The Family Care benefit rider will reimburse the insured for care costs paid up to the maximum plan reimbursement amount. This reimbursement maximum amount is per qualified dependent and is payable in addition to the maximum LTD plan benefit. In addition, the Family Care benefit rider combined with Lincoln's Progressive Partial Disability Benefit may allow an employee to 'earn' more than 100% of their pre-disability benefits.
"There are also situations where an insured employee may be catastrophically disabled and incur additional care costs for his or her family. The reimbursement benefit may be payable in these situations as well," said Risk.
For example, when an insured suffers the inability to perform 2 or more Activities of Daily Living (ADL) or a cognitive impairment, Lincoln's Progressive Income Benefit will pay an additional 10% for these catastrophic disabilities on top of the base benefit percentage. The Family Care Reimbursement Benefit rider, combined with the increased LTD benefit, allows for a greater benefit total during this critical time.
Lincoln's Family Care Reimbursement Benefit rider offers the following differentiated features:
Direct cash reimbursement benefit for each covered family member
An expanded definition of a Dependent to include a spouse and/or elder parent as well as dependent children. The Family Care benefit's expanded definition of dependent offers a timely solution for the issues faced by today's "sandwich generation."
Benefits are available both to individuals who are partially disabled and to individuals who suffer a cognitive impairment, are terminally ill, or suffer the loss of 2 or more ADLs.
This new rider further strengthens the long term disability solution Lincoln Financial offers, while assisting and supporting disabled insureds in their return to work efforts. Additional notable product features include:
Generous Partial Disability Calculation
This allows a claimant to receive up to 100% of pre-disability income through partial-disability employment combined with the LTD benefit payments for the duration of the claim.
Progressive Income Benefit
The core benefit is automatically increased by 10% when an insured suffers a loss resulting in significant cognitive impairment or the inability to perform two or more ADLs. The benefit may be increased up to 100% of pre-disability earnings with the purchase of additional coverage.
Recovery Benefit for Commissioned Employees
This provides a six-month supplemental benefit for commissioned employees while ramping up their pre-disability commissioned-based income.
Employee Assistance Program (EAP)- No Additional Cost
Lincoln EmployeeConnect(SM) is the standard EAP included with all Lincoln Financial LTD contracts and is available to all insured employees. Lincoln EmployeeConnect(SM) services include phone and web access to master's level counselors, free face-to-face consultations, legal and financial resources, and more.
Please note that the products and features described above are subject to state availability, and exclusions and limitations apply.
(1) Pew Research Center: "Baby Boomers Approach Age 60 - From the Age of Aquarius To the Age of Responsibility", December 8, 2005
Lincoln Financial EmployeeConnect services are provided by Bensinger, DuPont & Associates (BDA). BDA is an independent organization and is not part of Lincoln Financial Group.
Group insurance products are issued by The Lincoln National Life Insurance Company (Fort Wayne, IN), which does not solicit business in New York nor is it authorized to do so. In New York, group insurance products are issued by Lincoln Life & Annuity Company of New York (Home Office: Syracuse, NY). Both are Lincoln Financial Group Companies.
Reference: Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $178 billion as of December 31, 2008. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and Lincoln UK. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.
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- 2 - Disability Insurance Services Campaign: What Will You Say : Disability Insurance Services Inc. (2011/04/25)
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- 5 - How to File a SSDI Claim : Allsup (2010/01/08)
- 6 - United States Senate Finance Committee to Investigate Long-Term Disability Insurance Claims : Disability Attorneys Dell & Schaefer (2010/09/24)
- 7 - Health Insurance Options for the Self Employed : Disabled World (2009/02/05)
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