Eligibility
Faculty, Professional and Scientific (P&S) and Merit employees with an appointment of 1/2 time or greater.
Note: Retired employees and Pre/Post Doctoral Associates are not eligible.
Enrollment
Employees will be automatically enrolled in the long-term disability plan after 12 months of service. Coverage is effective the first of the month coinciding with or following the one-year anniversary date.
Employees have the option to apply for the LTD coverage for the first year of employment during their initial benefits enrollment period. Employees are required to provide evidence of insurability by completing a Principal State of Health Questionnaire, which must be approved by Principal Financial Group. Once approved, the employee pays the premium for the first year of coverage. After one year, ISU will pay the premium 100%.
Plan Overview
The amount of coverage is based on your university budgeted salary. Plan pays monthly, 63% of your salary up to a maximum of $10,000 per month.
Premiums
Employees are responsible for the premium on a post-tax basis during their first year of employment. Premium is based on annual budgeted salary. Premium is paid 100% by Iowa State University once you have completed one full year of continuous, active employment.
Policy Benefits
- Participants maintain full value of all Iowa State University life insurance policies enrolled at the time of disability incurred date. Premiums are paid through a life waiver.
- Participants are eligible to continue on the medical and dental insurance coverage through ISU.
- Benefit payments are coordinated with Primary and Dependents Social Security and Workers’ Compensation benefits.
- Cost-of-living adjustments based upon the Consumer Price Index are applied to benefits each year on the July 1 following completion of one year of continuous disability.
- This income is fully taxable. Long-term disability income is considered lost wages.
Voluntary Individual Disability Income Insurance
You and your family rely on your income every day. That’s why protecting it is so important to Iowa State University. We’re pleased to offer you an opportunity to supplement your group long-term disability (LTD) insurance with individual Disability Income insurance from Principal®, which currently insures our LTD and life insurance coverage, too.
LTD insurance covers all benefit-eligible Iowa State employees after a year of employment. It pays 63% of the budgeted salary of a disabled employee, and those payments are taxable income. Individual Disability Income insurance is designed to help boost the monthly payments you’d receive if you become too sick or hurt to work, increasing the amount closer to your working salary.
Because the individual Disability Income insurance policies are offered directly from Principal, the policy can continue even if you no longer work at Iowa State. You can elect at any time to add, drop, or change the coverage, but evidence of insurability may be required.
The voluntary coverage isn't subsidized by Iowa State, and the premiums can't be paid with ISU payroll deductions. Personalized premiums—which vary based on salary, coverage amount, and other factors—reflect a discount offered to ISU employees but are paid directly to Principal®.
Watch this video to see why protecting your income is important. Principal has also prepared a short video presentation
that further explains the benefits to you as an Iowa State employee.
If you’d like more details specifically designed for you, please visit this link and request a proposal: https://www.momentinsure.com/iowa-state
Pattern is not affiliated with any member of the Principal Financial Group®.
Disability insurance from Principal® is issued by Principal Life Insurance Company, Des Moines, IA 50392.
Disability insurance has limitations and exclusions. For cost and coverage details, contact your Principal® representative.