MMC Benefits Handbook
Cost of Coverage
If you elect Individual Disability Insurance coverage, you pay the full cost for coverage. The cost is based on your age, tobacco use, occupation and coverage amount (which is based on your eligible insurable income) at the time your coverage becomes effective.
Your cost is guaranteed to stay the same until your 65th birthday or fifth anniversary of the policy, if later. Generally, the younger you are when you purchase your coverage, the lower your premium will be.
Is the cost of Individual Disability Insurance discounted?
Yes. Your rate is discounted by 25% because Individual Disability Insurance is being offered through Marsh & McLennan Companies. The rate shown in your personalized enrollment materials reflect this discount.
Are the premiums the same for tobacco users and non-tobacco users and do the rates vary by gender?
Tobacco users' rates are approximately 25% higher than non-tobacco users. Rates are the same for men and women.
Will my cost change for Individual Disability Insurance coverage?
Your cost is guaranteed to stay the same until your 65th birthday or fifth anniversary of the policy, if later.
Each year, benefits will be reviewed based on adjustments in your income. If it is determined that, based on a compensation adjustment, you are eligible to increase your benefit/coverage, Unum will send you a letter of notification via mail about the coverage, increase amount and corresponding premium. Your Individual Disability Insurance policy benefit and the corresponding cost will automatically be adjusted (up to the plan maximum monthly benefit), unless you affirmatively decline the increase by returning the letter of notification to Unum.* You will pay an additional premium for the new coverage based on your attained age. The cost of your initial coverage amount will not increase. Generally, these changes may occur each September 1.
*If you reside in California, you will need to sign and return the letter of notification to Unum electing the increase in benefit and premium.
Is there a waiver of premiums once I am certified as disabled?
After 90 days of disability, all future premiums will be waived while you receive benefits under the policy and any premium paid during the 90 day period will be refunded.