Retirement Contribution Disability Insurance
How It Works
Your ongoing contributions to your 401(k) or other qualified retirement plans are dependent on your continued ability to work. Should a serious illness or accident prevent you from being able to continue your current occupation, this plan would help you continue long-term saving for retirement.
You may choose a monthly benefit of up to $3,500. Select an amount that most closely approximates your current monthly retirement contributions, rounded down to the nearest $100 (contributions must be a minimum of $1,000 and cannot exceed $3,500). Include any matching amount from your employer.
If I Already Have Disability Insurance, Do I Really Need This Insurance Too?
Standard disability coverage replaces lost current income. This coverage helps you meet a completely separate need — continuing to fund your retirement contributions in the event of your disability. This plan does not duplicate your current disability insurance. It pays in addition to any disability plan you may have.
Can The Benefit Amount Include Matching Contributions My Employer Is Currently Making?
Yes. To continue funding your retirement contributions at or near current levels, the benefit you choose should include any matching amount from your employer.
Will My Coverage Increase As I Increase The Amount Of My Retirement Plan Contribution?
Not automatically. The monthly contribution you choose now will remain the same unless you request a benefit increase in the future and that request is approved by New York Life Insurance Company.
Who Can Apply
ABA members residing in the U.S (excluding MT, NH, NV, OH, RI, TX, VT, WA, WY) and Puerto Rico, under age 65, and actively working full time (at least 30 hours per week) for at least 42 weeks in a calendar year are eligible to apply. Acceptance is subject to evidence of insurability as determined by the underwriting company.
Your Own Occupation Protection
This plan will pay benefits for up to five years if you are totally disabled due to sickness or injury and are unable to perform the substantial and material duties of your regular occupation, including your specialty of law. After five years, benefits will continue if your disability prevents you from performing the material duties of any gainful occupation for which you are reasonably qualified by training, education or experience.
Because this plan is designed to cover you in the event of long-term disability, the waiting period between onset of disability and beginning of benefits is either 180 days or 365 days, whichever you select. The longer the waiting period, the lower the premium costs.
Coverage will begin on the first day of the month following the date your application is approved. You must be actively at work on the date insurance is to take effect; otherwise, the insurance will take effect on the date you return to work. Approval of application and issuance of a Certificate of Insurance will depend upon information given on your application.
30-Day Free LookThis plan is backed by a full 30-day free review. Once your application is approved, you will receive your Certificate of Insurance. If for any reason after you receive it, you are not fully satisfied, simply write “cancel” and return it within 30 days without claim. Your premium will be returned promptly and you will be under no further obligation. This is just one more reason you can count on ABE for such an important purchase.
Long-Term Benefit Period
Benefits are payable to age 65 if a covered disability begins before age 63 and for two years for a covered disability beginning on or after age 63. Benefits will end if you are no longer disabled, die, or reach the end of benefit duration. There is a two-year limit for disabilities related to mental disorder.
Renewable To Age 70
Your coverage is renewable as long as you stay employed full-time, are under age 70, the group policy stays in effect, you maintain your ABA membership, and premiums are paid when due. Because this is a Group Policy, your coverage cannot be canceled on an individual basis.
Waiver Of Premium
Your premium payments will be waived when you start receiving benefits. Waiver will continue for as long as you are receiving benefits. Should you become disabled under this program, your premium payments will be waived beginning with the next premium due date. This waiver of premium will continue for as long as you are receiving benefits.
This plan does not provide benefits for: any disability that occurs during or is due or related to intentionally self-inflicted injury while sane or insane [Missouri Residents: This exclusion is not applicable to injury caused by an intentionally self-inflicted injury while insane]; declared or undeclared war or any act thereof; military service; or your incarceration for or participating in (except as a victim) an illegal occupation/activity or the commission of a crime; or any impairment or disease specifically excluded from your coverage. This plan limits benefits due to Mental Disorder to a maximum of 24 monthly payments.
In The Event Of My Death After Having Received Monthly Benefits Under This Program, Who Will Receive My Retirement Fund?
When a disability claim is made, you will be able to designate whomever you wish as your beneficiary.
What Is The Purpose Of The “Election Form”?
Signing the election form on the application authorizes the insurance company to pay your monthly disability benefit into an annuity contract should you become disabled.
How Benefits Are Paid?
- When a claim is made, benefits are placed into a fixed deferred annuity issued by New York Life Insurance Company and Annuity Corporation (a wholly owned subsidiary of New York Life Insurance Company).
- Withdraw Penalties: Funds are subject to withdrawal penalties.
- The fixed deferred annuity is issued by New York Life Insurance Company and Annuity Corporation. If you wish to assign or transfer any and all benefits payable under the plan to an institution of your choice, please write to the American Bar Endowment, at 321 North Clark Street, Chicago, IL, 60654-7648.
See your Certificate of Insurance for complete details.
Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 under Group Policy G-29903-0 on Policy Form GMR-FACE/G-29903-0. Coverage may vary or may not be available in all states.
New York Life Insurance Company's state of domicile is New York and its NAIC ID# is 66915.
All ABE-sponsored plans are group insurance plans, meaning coverage is issued to an ABA member under a Certificate of Insurance. It is not provided under an individual policy, nor is it employer/employee insurance. Plans may vary and may not be available in all states.
IMPORTANT NOTICE: HOW NEW YORK LIFE OBTAINS INFORMATION AND UNDERWRITES YOUR REQUEST FOR GROUP RETIREMENT DISABILITY INSURANCE
In this notice, references to “you” and “your” include any person proposed for insurance. Information regarding insurability will be treated as confidential. In considering whether the person(s) in your request for insurance qualify for insurance, we will rely on the medical information you provide, and on the information you AUTHORIZE us to obtain from your physician, other medical practitioners and facilities, other insurance companies to which you have applied for insurance and MIB, Inc. (“MIB”). MIB is a not-for-profit organization of insurance companies, which operates an information exchange on behalf of its members. If you apply for life or health insurance coverage or a claim for benefits is submitted to an MIB member company, medical or non-medical information may be given to MIB and such information may then be furnished by MIB, upon request, to a member company.
MIB and other insurance companies may also furnish New York Life, its subsidiaries or the ABE with non-medical information (such as driving records, past convictions, hazardous sport or aviation activity, use of alcohol or drugs, and other applications for insurance). The information provided may include information that may predate the time frame stated on the medical questions section, if any, on this application. This information may be used during the underwriting and claims processes, where permitted by law.
New York Life may release this information to ABE, other insurance companies to which you may apply for insurance, or to which a claim for benefits may be submitted and to others whom you authorize in writing. However, this will not be done in connection with test results concerning Acquired Immune Deficiency Syndrome (AIDS) or Human Immunodeficiency Virus (HIV). We may also make a brief report of your protected health information to MIB, but we will not disclose our underwriting decision.
New York Life will not disclose such information to anyone except those you authorize or where required or permitted by law. Information in our files may be seen by New York Life and ABE employees, but only on a "need to know" basis in considering your request. Upon receipt of all requested information, we will make a determination as to whether your request for insurance can be approved.
If we cannot provide the coverage you requested, we will tell you why. If you feel our information is inaccurate, you will be given a chance to correct or complete the information in our files. Upon written request to New York Life or MIB, you will be provided with non-medical information. Generally, medical information will be given either directly to the proposed insured or to a medical professional designated by the proposed insured. Your request is handled in accordance with Federal Fair Credit Reporting Act procedures. If you question the accuracy of the information provided by MIB, you may contact MIB and seek a correction. MIB's information office is: MIB, Inc., 50 Braintree Hill Park, Suite 400, Braintree, MA 02184-8734, telephone (866) 692-6901 (TTY 866-346-3642). Information for consumers about MIB may be obtained on its website at www.mib.com.
For NM Residents: Protected persons1 have a right of access to certain Confidential abuse information2 we maintain in our files and they may choose to receive such information directly. You have the right to register as a Protected person by sending a signed request to the Administrator at the address listed on the application. Please include your full name, date of birth and address.
1Protected person means a victim of domestic abuse: who has notified us that he/she is or has been a victim of domestic abuse; and who is an insured person or prospective insured person.
2 Confidential abuse information means information about: acts of domestic abuse or abuse status; the work or home address or telephone number of a victim of domestic abuse; or the status of an applicant or insured as family member, employer or associate of a victim of domestic abuse or a person with whom an applicant or insured is known to have a direct, close, personal, family or abuse-related relationship.
|New York Life Insurance Company||
How Your Assignment of Experience Credits to ABE Works — Your Plan's Unique Charitable Giving Feature
Founded by the ABA in 1942, the American Bar Endowment (ABE) is a §501(c)(3) not-for-profit organization composed of members of the American Bar Association. ABE fulfills its charitable purpose of improving the administration of justice, one of our profession’s highest obligations, by making annual grants to support legal research, educational, and public service projects in the field of law, including those conducted by ABA’s Fund for Justice and Education (FJE) and the American Bar Foundation (ABF). ABE also maintains the Legal Legacy Fund for the support of its grantees. By participating in ABE’s group insurance programs, designed for and available only to ABA members, members can contribute to these efforts. ABA members who enroll in ABE-sponsored insurance programs agree that their share of any experience credits payable on the group policies may be retained by ABE for its charitable purposes unless reclaimed as outlined below. The Internal Revenue Service has ruled that members who donate their experience credits to ABE are eligible for a charitable contribution deduction on their individual income tax returns. Contributions to ABE are tax deductible under Section 170(c) of the U.S. Internal Revenue Code, in accordance with IRS regulations and the March 1987 ruling provided to ABE by the IRS.
Members who donate experience credits to ABE make a difference. These funds, after administrative expenses, are the primary source of ABE’s charitable grants and additions to the Legal Legacy Fund. Insured members who donate their experience credits help meet their professional and public responsibilities, as well as obtaining valuable coverage for their families. About 85% of members donate their experience credits; these members are notified each year by late January of the amount, if any, of their dividend donation for the prior year. (Experience credits are not guaranteed, and in any given year, a given plan may not pay a dividend; experience credits will vary from year to year.)
Members who wish to request a refund of their experience credits may do so. The approximate percentage of premium available for refund (if any) on each plan will be published in each November issue of the ABA Journal. You do not need to wait for this information as refund requests are accepted beginning January 1. To request that experience credits be paid to you rather than donated to ABE: After the first policy year of your participation, a written request for refund (by mail, fax, or email to firstname.lastname@example.org) must be made each year and must reach ABE by December 15. When ABE receives your refund request, it will send a confirmation. Retain this for your records as proof your request was timely received. If you do not receive a confirmation within 3 weeks, contact ABE promptly to obtain another copy. (Special instructions for new applicants are contained in the application and apply to experience credits, if any, during the first policy year only.)
Dividend checks and/or contribution notices for your tax return are mailed by late January. If you receive a contribution notice and you did not intend to make a contribution, you may request a one-time waiver of the December 15 deadline by asking for a refund, if you have not previously requested such a waiver.
Please note: Members who do not want to contribute experience credits to ABE must make a written request for refund each year, using the procedures above. When members sign the application, they are agreeing to make an annual decision whether to contribute. Do not sign the application if you do not agree with these procedures.
THIS IS A SUMMARY of the principal provisions of the group insurance program offered through the American Bar Endowment for its members. IT IS NOT TO BE CONSIDERED A CONTRACT OF INSURANCE. The complete terms of the program are set forth in the Group Policy G-29903-0 on policy form GMR-FACE/G-29903-0 issued by New York Life Insurance Company to the American Bar Endowment.
Bonnie Czarny is licensed in AR, Ins. Lic. #404091 and in CA, Ins. Lic. #0H99426
This material not intended for residents of New Mexico.