Short-Term Disability Insurance - Lincoln Financial Group

Short-TermDisability InsuranceGLM-01207NY 11/06L i f e a n d A D & D L o n g - T e r m D i s a b i l i t y S h o r t - T e r m D i s a b i l i t y D e n t a l W o r k s i t e

Short-TermDisabilityInsuranceThe ability to earn an income is sometimes the onlysource of financial security an employee has. If so,a disabling injury or illness that stops the incomecan be devastating. That’s why short-term disability(STD) insurance from Lincoln Financial Group is animportant part of any employee benefits package.About two-thirds of thedisabling injuries by workersin 2003 occurred off the job.National Security Council;Injury Facts, 2004 EditionAN INCOME SAFETY NETLincoln Financial, an industry-leading group insurance provider, offersSTD insurance to provide employees a form of income protection. Workers’compensation and health insurance are fine for on-the-job injuries and payingmedical bills. However, these plans don’t replace income when a worker isdisabled by a non-work related illness or injury and needs to pay the monthlybills and weekly expenses. That’s where STD insurance comes in with incomeprotection to help them get by without jeopardizing their lifestyle.For covered disabilities, the STD benefit is calculated as a percentage of anindividual’s weekly earnings and paid on a weekly basis. The benefit is usuallybetween 50% and 70% of earnings with a duration period lasting anywherefrom 13 to 104 weeks. These and other variables provide you with flexibility tomeet your specific needs at affordable group rates.FLEXIBLE COVERAGE OPTIONSLincoln Financial knows that one size does not fit all when it comes toemployee benefit packages. That’s why we develop our plans with a variety ofcoverage options. It can be a full-featured plan with the most comprehensivecoverage possible, or if out-of-pocket expenses are a concern, a more costconsciousplan can be created. The choice is yours.• The maximum weekly benefit typically varies from $50 to $1,000* withhigher amounts available for qualified cases. Lincoln Financial also pays aprorated benefit for a partial week of total disability.• Benefit percentages can range from 50% to 70% of weekly salary with60% being most common. These percentages allow for financial supportduring a difficult time while still encouraging an employee back to fulltimeemployment and full earning capability.*Benefits rounded to the nearest dollar. Coverage amounts and limitations may vary according tostate regulations.

• Establishing a maximum benefit period is another variable in tailoringthe perfect plan. A number of choices are available including 13-, 26-,52-, and 104-week options.• Finally, the elimination period defines the number of days an employeemust be continuously disabled before receiving benefit payments.Typically, the elimination period is longer for illness than injury sincesick time or PTO (Paid Time Off) is designed to cover an illness lastingonly a few days. For injuries, Lincoln Financial offers eliminationperiods of 1, 8, 15, or 31 days and for illness the options are 4, 8, 15,or 31. The most popular option for employers is the first day for injuryand the eighth day for illness, but longer durations can be used to helpcontrol cost.PARTIAL DISABILITY BENEFIT – A STANDARD FEATUREAs a standard policy feature, Lincoln Financial pays a benefit if a coveredemployee becomes partially disabled under the following conditions:• The employee is engaged in partial disability employment and earning atleast 20% of pre-disability earnings.• The employee is under the regular care of a physician.• Upon request by Lincoln Financial, the employee provides proof ofcontinued partial disability, physician’s care, and/or reduced earnings athis or her own expense.Under the Lincoln Financial standard definition of disability, we do notrequire an employee to be totally disabled before receiving partial disabilitybenefits. In fact, Lincoln Financial allows a disabled employee to satisfythe elimination period with days of total disability, partial disability, or acombination of both.Though the financial risk ofdisability is as great as orgreater than other risks thatare routinely insured, workersand employers place thefinancial risk of disability adistant fourth on the list ofrisks addressed by employeebenefits.Disability Insurance: A MissingPiece in the Financial SecurityPuzzle; America’s HealthInsurance Plans (2004)BACKED BY THE BESTUnderwritten by Jefferson Pilot LifeAmerica Insurance Company, a LincolnFinancial Group affiliate, our STD contracts are backed by one of the nation’stop group insurance providers. With a solid record of financial strength alongwith industry-leading innovations for service and support, Lincoln Financialensures that employers and employees alike are handled in a prompt,courteous, and professional manner by highly trained representatives withintegrity you can trust.For more information about this valuable coverage, contact your employeebenefit advisor, visit www.lfg.com, or call (800) 423-2765 and ask for theLincoln Financial sales office in your area.

Exclusions and LimitationsDesigned for groups with 10 or more employees, this coverage is subject to certainexclusions and limitations. Benefits under this coverage would not be payable due to:• Intentional or self-inflicted injuries or sickness.• Sickness or injury covered by workers’ compensation or during which theinsured receives payment under a sick pay or salary continuation plan sponsored bythe employer.• Sickness or injury resulting from employment for wages or profit.• Loss caused by any act of war, declared or undeclared.• Benefits are not payable if an employee is not under the regular care of a physician.The product described provides disability income insurance only. It does not providebasic hospital, basic medical or major medical insurance as defined by the New YorkState Insurance Department. This coverage does not replace workers’ compensation orstate-mandated disability benefits. Job-related disabilities normally covered by workers’compensation are excluded. Days paid under sick pay or salary continuation plans are notpayable. For other disabilities, benefits are reduced by any disability income benefit theinsured is eligible for under governmental or association retirement systems as a result ofhis/her job with the employer; any disability or retirement benefits under a retirement plan(unless wholly-funded by employee contributions); any compulsory benefit act or law;Social Security disability or retirement benefits; and earnings received from any form ofemployment.An insured employee’s coverage under the policy will terminate on the earliest of thefollowing: the last day of the month the insured requests termination; the last day of thelast month premium is paid for the insured; the date the insured is no longer a memberof an eligible class; the date the policy, or the portion relating to this benefit, terminates;the date the insured’s employment terminates; the date the insured goes on layoff or leaveof absence (except disability leave); or the date the insured enters the armed services foractive duty as detailed in the policy.For partial disability, the weekly benefit will equal the lesser of the insured’s basicweekly earnings multiplied by the benefit percentage (not to exceed weekly maximum)less other income benefits (except earnings from partial disability employment); or basicweekly earnings less all other income benefits, including earnings from partial disabilityemployment. Partial disability benefits are payable until either the maximum benefitperiod ends, the disabled employee’s current earnings exceed 99% of his or her basicweekly earnings, or the employee ceases to be partially disabled.Jefferson PilotLifeAmericaInsurance CompanyService Office Address:8801 Indian Hills DriveOmaha, NE 68114800.423.2765www.lfg.comHome Office Address:Florham Park, NJTwo or more periods of disability will be treated as one period of disability unless theinsured returns to active work on a full-time basis for at least two consecutive weeksbetween periods of disability or the succeeding period of disability is due to a sickness orinjury that is unrelated to the cause of the prior period of disability.NOTE: This is not a contract. Group insurance coverage is issued and underwritten by Jefferson PilotLifeAmerica Insurance Company. This brochure is not intended as a complete description of Jefferson PilotLifeAmerica Insurance Company’s coverage. The controlling provisions are provided in the policy, which isavailable for review. The information provided here does not modify or alter the coverage provided underthe policy in any way. State-specific restrictions, requirements, and approvals are not addressed in thisbrochure. Some features or coverage described in this brochure may not be available in all states.Jefferson Pilot LifeAmerica Insurance Company is a Lincoln Financial Group® company. Lincoln FinancialGroup is the marketing name for Lincoln National Corporation and its affiliates.©2006 Lincoln National Corp.For use in New York only.