Protect your paycheck – New disability insurance options for 2017
September 19, 2016 •
Time away from work for a pregnancy, illness or unexpected injury could mean months without a paycheck. While UC’s basic employer-paid disability insurance offers some protection – a benefit capped at $800 per month for six months – it probably won’t be enough to cover your expenses.
For a modest monthly premium, UC’s Voluntary Disability Insurance replaces much more of your income – 60 percent of your eligible pay up to $15,000 per month – for increased financial security when you need it most.
UC is changing its voluntary disability insurance options to give all eligible employees — those currently covered and those not enrolled — new options for protecting their finances. For 2017, you can choose Voluntary Short-Term Disability (benefits up to six months), Long-Term Disability (benefits after six months, up to your Social Security retirement age) or both, depending on your needs and budget. Since you pay premiums with after-tax dollars, income from Voluntary Disability Insurance is generally not taxable.
If you are not enrolled in Supplemental Disability Insurance
If you’ve never thought about disability insurance, this is the year to take a look. During Open Enrollment, you cannot be denied coverage due to an existing medical condition. Later, you’ll need a statement of health to qualify.
UC has also expanded eligibility to all employees eligible for full, mid-level or core benefits, so this may be your first opportunity to enroll.
If you are already enrolled in Supplemental Disability Insurance
To ensure continuing protection, those who are currently enrolled in Supplemental Disability and don’t take action during Open Enrollment will be automatically enrolled in both Short- and Long-Term Voluntary Disability Insurance. This change will affect your premium costs, though, so take the time to choose the coverage you need. You can reduce or discontinue coverage at any time.
Learn more
You’ll get more information, including a tool to help you estimate your monthly premiums, during Open Enrollment. But you don’t have to wait to learn about your new choices for Voluntary Disability Insurance. For all of the details — and for more information about why disability coverage is important — visit UCnet’s 2017 Disability Insurance page.
It would be good if the language here and on the UCNet site was clearer that the new options being discussed *replace* the existing options. While this can be inferred on careful reading, there is nothing in the article that directly states that the current Supplemental Disability insurance option is going away (even in this article, while it says \you will be enrolled in both short- and long-\, it doesn’t say \instead of your current insurance\).
This is even more confusing for me on the current Disability Insurance web page (http://ucnet.universityofcalifornia.edu/compensation-and-benefits/disability-life-accident/disability/index.html). That page talks about the current options, but the \Important news for 2017\ does not indicate that the current options are going away — it focuses much more on the new eligibility window.
Thanks for your comment, Eric. You are correct that the new options for 2017 replace the current ones and we’ll make sure that’s clear in the UCnet article and on the Open Enrollment website.