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Disability Premiums

Premiums are the amount that employers pay, or withhold from an employee’s paycheck, to offer disability insurance benefits.

Premium Rate Structure

Premiums are based on the employer’s covered monthly payroll, and the monthly rate for the plans the employer is enrolled in1.

Since disability coverage is compensation-based, this rate structure is a more equitable way to set premiums.

We calculate premium rates and disability payments using your employees’ annual compensation information in the Employee Roster. Please be sure to keep the Employee Roster updated.

Voluntary Policy Rates

Rates are higher because projected risk is also factored into employee-paid (voluntary) policy premiums (those with greater healthcare needs are more likely to purchase disability insurance than are healthier people).

Nonetheless, our policy array offers affordable solutions that can provide this important coverage to all employees.

New Disability Vendor

Zurich American Life Insurance Company (Zurich), a New York domestic life insurance company, will become the insurer for the group short-term disability (STD) and long-term disability (LTD) insurance policies, effective January 1, 2020.

Next Steps and Key Dates

  • Employers will receive a confirmation letter showing their disability insurance policy selection, or default plan placement (for those who did not make a selection during the enrollment period).
  • If you elected to offer employee-paid (voluntary) disability coverage, your employees will need to make an enrollment decision between November 19 – December 31, 2019 using this enrollment form.
  • Administrators may enroll eligible employees in employer-paid plans using MLPS beginning December 3, 2019. Groups adding 25+ new employees may use this template.
  • The effective date of coverage is January 1, 2020.

Want more information? Watch our webinars now available on-demand.

All communications regarding the change will also be posted in Documents & Mailings. Check there for anything you may have missed!

1 Policy Number: CNYEX01112

 

Short-Term Disability Plans – Employer Paid

Rates are per $100 of covered monthly payroll, effective January 1, 2020 – December 31, 2022.

Elimination Period / Percentage of Pay

Monthly Rate

26 weeks - 60%

$ 0.386

26 weeks - 66.67%

$ 0.456

13 weeks - 60%

$ 0.102

13 weeks - 66.67%

$ 0.142

 

Long-Term Disability – Employer Paid

Rates are per $100 of covered monthly payroll, effective January 1, 2020 – December 31, 2022.

Elimination Period / Percentage of Pay

Monthly Rate

180 days - 40%

$ 0.092

180 days - 60%

$ 0.280

180 days - 66.67%

$ 0.373

90 days - 40%

$ 0.106

90 days - 60%

$ 0.305

90 days - 66.67%

$ 0.400

 

Short-Term Disability Plans – Voluntary / Employee Paid

Rates are per $100 of covered monthly payroll, effective January 1, 2020 – December 31, 2022.

Elimination Period / Percentage of Pay Age Bracket Monthly Rate
26 weeks - 60% <30 $ 0.779
31-40 $ 0.625
41-50 $ 0.458
51> $ 0.696
26 weeks - 66.67% <30 $ 0.894
31-40 $ 0.738
41-50 $ 0.553
51>

 

 $ 0.812
13 weeks - 60% <30 $ 0.215
31-40 $ 0.175
41-50 $ 0.124
51> $ 0.186
13 weeks - 66.67% <30 $ 0.301
31-40 $ 0.259
41-50 $ 0.166
51> $ 0.240

 

Long-Term Disability Plans – Voluntary / Employee Paid

Rates are per $100 of covered monthly payroll, effective January 1, 2020 – December 31, 2022.

Elimination Period / Percentage of Pay Age Bracket Monthly Rate
180 days - 50% <30 $ 0.233
31-40 $ 0.466
41-50 $ 0.837
51> $ 1.696
90 days - 50% <30 $ 0.413
31-40 $ 0.806
41-50 $ 1.081
51> $ 2.131

 

1 Effective January 1, 2020

 

Policy Number: CNYEX01112
Disability Insurance Disclaimer

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