Guaranteed Issue Group Disability for Postal/Federal Employees

[Tony T]

After having Assurity Life and Sun Life (PIC) close their doors on the Federal Employee market, Postal and Federal employees again have a source for guaranteed disablility coverage through payroll deduction through the Manhattan Group...

Federal employees are a receptive group to work with since disability is not part of their benefit package...The problem seems to be that the companies who underwrite the DI plans eventually get killed with the loss ratio since, by law, they must set their reserves higher...

Hopefully, Manhattan will stick around for at least 5 years...It's generally not a struggle to piggy back some life insurance on top of the group DI and, the best part, you don't have to ask for a check at the end of the close!!

Tony

 

[arnguy]

Re: Guaranteed Issue Group Disability for Postal/Federal Employee

Does the lack of disability coverage extend to all Federal employees or just Postal Service employees? BTW who is this Manhattan Group?

 

[Norwayguy]

Re: Guaranteed Issue Group Disability for Postal/Federal Employee

Are you talking about STD? Don't FERS and CSRS employees have DI built into the pension if they become permanently disabled? Don't they accumulate a lot of sick leave and have the ability to give or recieve sick leave time from other employees?

I only ask because when I ran the numbers for the Teachers I worked with when I was doing the 403(b) market, I found that the real "need" was for STD but when you look at the sick time they accumulate it wasn't worth it, at the time most of the teachers I was talking to had over 100 days in sick time available and 180 days was an entire school year for them, plus on top most belonged to what they called a sick bank where they deposit some sick time into and if they had a real problem they could get time from the sick bank in addition to personal time.

(Personally I think these employees have way to much sick leave)

 

[Tony T]

Re: Guaranteed Issue Group Disability for Postal/Federal Employee

The majority of Postal Employees and Va Employees that express some interest in STD have very little sick time...I have written employees who have over 400 hours but, most of the employees I've written over the years have less than two weeks of sick time and very little annual leave...So, this coverage has value...

A Federal Employee may qualify for their pension if they are permanently disabled at a reduced benefit amount...But, there is no disability coverage "built into" their pension, they are allowed to petition it earlier...Some employees may also be eligible for SS DI retirement, but, only after a 12 month waiting period ...Tony

 

[ABC]

Re: Guaranteed Issue Group Disability for Postal/Federal Employee

So are you selling a supplemental STD benefit to this group of employees?

I was under the impression federal employees had STD and LTD benefits from a group stand point?

 

[Tony T]

Re: Guaranteed Issue Group Disability for Postal/Federal Employee

They have no short term or long term disability coverage as part of their benefit package...