321 North Clark Street
Retirement Contribution Disability Insurance
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How it works
Your ongoing contributions to your 401(k) or other qualified retirement plan 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 program would help you continue funding your retirement savings, as described below. (This Plan is not available to residents of Oregon, Guam, Puerto Rico, Virgin Islands, all U.S. Territories, and all foreign countries.)
All of the applications for this Plan have been created using Adobe Acrobat and are saved as Portable Document Format (PDF) files. They are best viewed using Adobe Acrobat Reader version 6.0 or later. If you do not have the Adobe Acrobat Reader, download and install the reader by pushing the "Get Acrobat" Reader button below.
If you are having problems installing the Adobe Acrobat Reader, consult with Adobe Technical Support.
Benefit
You select your monthly benefit, a minimum of $1,000 and up to $3,500 a month. Choose the amount that best approximates your current contributions to your qualified retirement plan (available from your employer), on a monthly basis, rounded down to the nearest $100 (a minimum of $1,000 but not to exceed $3,500). Include any matching amounts from your employer. If your monthly contribution exceeds $1,200, we will send you a request for documentation of your current qualified retirement plan contribution.
How benefits are paid
When a claim is made, benefits are placed into a fixed annuity with a guaranteed rate of return* and tax-deferred earnings.
The current AG HorizonFlex Annuity offers an annual interest rate based on the current rate in effect on the day any premium funds are received, and earnings will accumulate tax-deferred. Consult your tax advisor for details. As of November 20, 2007, the current interest rate on the HorizonFlex Annuity is 5.9%, which pays an additional first year interest rate bonus on all premiums paid during the first policy year. Rates subject to change without notice. [Access: Funds are subject to withdrawal penalties within the first eight years following the first contribution. Penalties are 8% in the first three years, 7% in year four, 6% in year five, 5% in year six, 3% in year seven, and 1% in year eight. Withdrawals prior to age 591/2 are subject to 10% Federal tax penalty.] The fixed deferred annuity is issued by American General Life Insurance Company (Houston,Texas) Contract No. 04321and The United States Life Insurance Company in the City of New York (New York, New York), member companies of American International Group, Inc. 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, 60610-5209.
*The guarantee is based on the claims-paying ability of American General Life Insurance Company (Houston, Texas) and/or and The United States Life Insurance Company in the City of New York (New York, New York), which are the insurance companies that issue the annuity.
Who can apply
To be eligible for this offer, you must be under age 65, and be actively working full time (at least 30 hours per week) for at least 42 weeks in a calendar year. No health exams or tests are usually required*. Acceptance is subject to evidence of insurability as determined by the underwriting company.
*Issuance of a Certificate of Insurance or payment of benefits may depend upon the answers given in the application and the truthfulness of those answers. Pre-existing conditions limitations may apply.
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 in the practice 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 for by training, education or experience.
Effective date
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 policy will depend upon information given on application.
Waiting period
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.
Long-term benefit period
Benefits are payable to age 65 if disability begins prior to age 63 and for two years for a 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 illness.
Renewable to age 70
Coverage is renewable to age 70 as long as you pay the premium when due, unless you retire or cease to be actively at work for reasons other than total disability, the group policy ends or you cease to be a member of the ABA/ABE.
Waiver of premium
Your premium payments will be waived beginning with the next premium due date when you start receiving benefits. Waiver will continue for as long as you are receiving benefits.
Coordination with other disability plans
Many disability policies set a limit on the percentage of pre-disability income that they will replace. Member companies in the American Internation Group will not count this plan toward that limit on their disability plans, including disability plans through the ABE. Check with your disability carrier to be sure if it will do the same.
Exclusions
No benefit will be paid for a disability due to intentionally self-inflicted injury or attempted suicide; a declared or undeclared war or an act of war; service in the armed forces of any country, except during a temporary active duty assignment with the U.S. armed forces of less than eight weeks duration; or committing a crime or an attempt to do so. The benefits to be paid for a complication of pregnancy will be the same as those paid for a sickness.
The company behind the plan
The disability insurance portion of this program is underwritten by The United States Life Insurance Company in the City of New York, a member company of American International Group, Inc. This company has been awarded an A++ (Superior) rating from A.M. Best. This rating reflects the company's superior overall financial strength and operating performance when compared to A.M. Best's standards.
The rating is current as of November 9, 2007. For the latest A.M. Best's ratings and A.M. Best's Company Reports, please visit the A.M. Best Web site at www.ambest.com. This is only a brief summary of benefits and is subject to the terms, conditions, exclusions and limitations of group policy number G-610,155, form number G-19000. Coverage may vary and may not be available in all states.
*Issuance of a Certificate of Insurance or payment of benefits may depend upon the answers given in the application and the truthfulness of those answers.
FAQ
Q. If I already have disability insurance, do I really
need this program too?
A. Yes. Standard disability coverage replaces lost current income.
This coverage helps you meet a completely separate need maintaining your retirement plan contributions in the event of
your disability. This plan does not duplicate your current disability insurance. It pays in addition to any disability plan or plans you may have
and the benefits of this plan will not be diminished by other income you receive if disabled. (See "Coordination with other disability plans" above.)
Q. Can the benefit amount include matching contributions my employer is currently making?
A. Yes. To continue your retirement plan funding at or near current levels, the benefit you choose should include any matching amount from your employer.
Q. What monthly benefit should I choose?
A. You may choose up to $3,500 per month. Select an amount
that most closely approximates your current monthly retirement contribution, rounded down to the nearest $100 (contribution cannot be less than $1,000 and cannot exceed $3,500). Include any matching amount from
your employer. If your monthly benefit is to be more than $1,200, we will
request documentation of your current qualified retirement
plan monthly contribution after we receive your application.
This documentation should be readily available from your HR department or benefits officer.
Q. Will my coverage increase as I increase the amount
of my retirement plan contribution?
A. 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 the insurance company.
Q. In the event of my death after having received monthly benefits under this program, who will receive my retirement fund?
A. When a disability claim is made, you will be able to designate whomever you wish as your beneficiary for the annuity purchased through this program.
Q. When may I begin receiving my retirement benefits from this program?
A. As with most retirement plans, benefits become payable to you
at the age of 59 1/2. See "How benefits are paid" above for withdrawl penalties.
Q. What is the purpose of the "election form?"
A. Signing the election form on the back of the application authorizes the insurance company to pay your monthly contribution benefit into an annuity fund should you become disabled. You would then be able to contact an investment expert to select the option best for you at that time.
Q. If I am disabled, will I still have to pay the premiums on this program?
A. No. Should you become disabled under this program, your premium payments will be waived beginning with the next premium due date after you have received benefits for six consecutive months. This waiver of premium will continue for as long as you are receiving benefits.
Q. What distinguishes this ABE retirement contribution disability insurance from all other plans?
A. This group policy has a unique charitable giving feature that enables members to donate any experience credits that may be payable to the not-for-profit ABE Endowment for its charitable purposes. Insured members are eligible for a charitable tax deduction. See "Assignment of Dividends" below.
30 Day Free Look
To apply for coverage, simply complete the application form, sign, date, and return to us with your first premium payment. After your application has been approved, you will receive a Certificate of Insurance. Take up to 30 days (without claim) to review it carefully. If this plan isn't everything you expect, simply write "cancel" and return the Certificate within 30 days, and you will promptly receive full refund of any premiums paid. You're under no further obligation.
Schedule Of Benefits And Quarterly Premiums
Assignment of Dividends
How Your Assignment of Dividends Works– your policy’s Unique Charitable giving Feature
Founded in 1942, the American Bar Endowment is a §501(c)(3) not-for-profit organization composed of members of the American Bar Association. ABE makes annual grants to the American Bar Foundation and ABA's Fund for Justice and Education to fulfill ABE's charitable purpose of improving the administration of justice, one of our profession's highest obligations, by funding research, public service and educational projects in the field of law. ABE also maintains a Legacy Fund for the permanent support of its grantees. By participating in the Endowment's group insurance programs, designed for and available only to ABA/ABE members, members can contribute to these funding efforts. Lawyers who enroll in ABE-sponsored group insurance programs agree that their share of any experience credits payable on the group policies may be retained by the Endowment for its charitable purposes unless reclaimed as outlined below. The Internal Revenue Service has ruled that insured members who leave their experience credits with the Endowment are eligible for a charitable contribution deduction on their individual income tax returns.
Members who donate experience credits to ABE make a difference--these funds, after administrative expenses, are the primary source of ABE's charitable grants. They also add to the Legacy Fund. Insured members who donate their experience credits are helping to meet their professional and public responsibilities, as well as obtaining valuable coverage for their families. About 90% of members donate their experience credits and these members are notified each year in late January of the amount, if any, of the experience credit donation for the prior year. (Experience credits are not guaranteed and in any given year, a given plan may not pay a experience credit; 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's ABA Journal along with ABE's Annual Report; you do not need to wait for this information as refund requests are accepted beginning January 1, for each year. To request that experience credits be paid to you rather than donated to ABE: For each year after the first policy year of your participation, a written request for refund (by mail, fax, e-mail to experiencecredits@abendowment.org or online at www.abendowment.org) must be made each year and must reach the Endowment by December 15.
When your refund request is received, a confirmation will be sent; retain this for your records. If your confirmation is not received within 3 weeks, contact the Endowment promptly to obtain another. Instructions for new applicants can be found on the bottom or back of the application and apply to experience credits, if any, during the first policy year only.
Please note: Members who do not want to contribute experience credits to ABE are required to "opt out" each year, using the procedures above. When members sign the application, they are agreeing to make an annual decision whether to contribute. Please do not sign the application if you do not agree with these procedures.
To fill out the request for dividend refund form, please click here
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. This plan is underwritten by the United States Life Insurance Company in the city of New York, a member company of American International Group, Inc., NAIC#70106, domiciled in New York state with their principal place of business located at 70 Pine Street, New York, NY 10270, licensed in all states, plus DC, except PR. This information is a brief summary of benefits only, and is subject to the terms, conditions, exclusions, and limitations of Group Policy No. G-610,155, Form No. G-19000. Coverage may vary or may not be available in all states.
We will be happy to answer your questions. Just call 1-800-621-8981 or e-mail us at information@abendowment.org