Your earning power is the key to your family's financial well-being.
Financial planners recommend income protection insurance, sometimes called disability
insurance, as a key element in your overall asset protection
program. Your earning power is probably the most important
resource your family has and you can protect it simply and
Who would your family turn to if you weren't able
to work due to an illness, injury, or sickness? Where would
the money come from to pay the mortgage, taxes, car payments,
college tuition, and other expenses? Federal Housing
Administration statistics show that 46% of all mortgage
foreclosures are due to disability.
What are the chances of being disabled?
Much greater than you ever imagined! According to the American Society of Actuaries,
it's greater than the risk of death between ages 25
and 65 at every age. Chances are one in two
that a 30 year old will be disabled for more than three
months before age 65. It's not a risk you should ignore
especially when Trust Income Protection Plans can provide the
replacement income and peace of mind you need at affordable
Why Trust Income Protection Insurance?
The plan is designed by psychologists for psychologists who really understand the
commitment it takes to have a career in psychology and the
duties associated with the practice of your profession. All
plans may be continued for as long as you work at least 20
hours per week on a regular basis regardless of age. Benefits
are payable if you can't perform the duties of "your occupation."
What about Social Security Disability Income?
There are disability benefits available from Social Security, but only under limited
circumstances. The Social Security Administration defines disability as the inability to engage in ANY substantial
work activity (currently defined as a dollar amount currently set by law at no more than $500 a month) due to a
medically determinable physical or mental impairment expected to last for at least 12 months or result in death.
Trust Income Protection Plans are flexible and responsive!
- Monthly benefits of up to $10,000. Choice of benefit payment periods (5-year
plan or to Age 65).
- Choice of benefit Waiting Periods, 28, 90, and 180 days.
- Residual benefits to ease your return to work.
- Guaranteed Insurability Option, (GIO)* guarantees that you can
purchase additional monthly income protection as your earnings increase without medical evidence of
- Benefit Booster** prevents Cost of Living increases from eroding the
purchasing power of your protection.
* Each May 1, you may purchase up to 10% of the initial benefit selected provided you are
actively at work and have not been hospitalized in the 6 months prior to May 1. The maximum amount of increase is
limited to the maximum benefit of the program.
** The maximum accumulated benefit under this option will be
200% of the monthly benefit you have selected.
How much Income Protection do I really need?
We recommend that an individual apply for enough Income Protection Insurance to
replace 60% of their annual gross earnings. This level of coverage usually provides enough income to cover the basic
needs of the family such as income for mortgage payments or rent, insurance premiums, food, clothing, automobile
operation and maintenance, installment payments, utilities,real estate, and other taxes, and children's school expenses.
It's important to remember that if you pay the premiums personally with after tax dollars, the benefits from Income
Protection policies are federal income tax-free. A plan which provides 60% of gross taxable pay really replaces 85-90%
of net spendable income depending upon your tax
situation. The maximum total benefit for which you may apply
may not exceed 60% of your gross earnings.
How long do I wait before the plan benefits begin?
You can choose a benefit Waiting Period to suit your individual needs. Generally, the
longer you can wait for benefits to begin after becoming
disabled, the lower the cost of the plan. A Waiting Period
ought to be viewed like a deductible on other insurance you
own. Try to dovetail the beginning of benefit payments to
coincide with the time when any salary continuation plan runs
out. Benefit waiting periods of 28, 90, and 180 days are
available for LifeStyle-5 and LifeStyle-65 plans.
Plan features offer comprehensive protection!
Booster is designed to increase the benefit being received
once each year on the date disability payments began by a
maximum of 3% or the annual percentage increase in the
Consumer Price Index, whichever is less. You may add this
feature to help offset the ravages of inflation on the
purchasing power of your benefit.
Guaranteed Insurability Option (GIO) is automatically included in all new plans
and allows the purchase of additional Income Protection
Insurance each year without medical evidence of insurability.
As your income grows your needs change and your Trust Income
Protection Insurance can be increased regardless of your
medical condition. Increases equal to 10% of your existing
coverage may be purchased by opting to increase the
protection each May 1. To qualify you must be actively at
work, not have been hospitalized in the prior 6 months, and
provide income verification if required.
What are my choices?
Trust Income Protection Insurance is designed to replace lost earnings in the
event of total disability resulting from injury, accident, or
sickness. Subject to certain limits discussed in the
brochure and the certificate, this insurance will pay you a
benefit if you are prevented from performing the duties of
your occupation. It's important to remember that the APA
Insurance Trustees, comprised of insurance professionals who
are experts in the field, and psychologists who are engaged
in your profession, actually designed these plans.
This Income Protection Plan provides disability benefits for a period of up
to five years or age 62, whichever comes first, for
disabilities commencing before age 60. For
disabilities commencing between ages 60-65,
benefits continue for two years or to age 65,
whichever comes first. For disabilities beginning
after age 65 benefits will be paid for one year.
Disability benefits under this plan can span your entire working career. For disabilities which commence prior to age 60, benefits are paid until age 65. For disabilities commencing
between the ages of 60-65 benefits are paid for two years or to age 65 whichever comes first. For disabilities commencing after age 65, benefits will be
paid for one year.
LifeStyle-65 Plus-New Plan Enhancement!
LifeStyle-65 Plus offers you the opportunity to replace as much as 67% of your taxable income
rather than a 60% replacement. The higher replacement ratio provides funds that
will allow a continuation of contributions to your retirement/savings plan. It's
important to remember that even a long term disability may not affect your
longevity and that a continuation of retirement plan funding may be critical for
you and your spouse. This plan enables you to replace your current income and
continue to set funds aside for your future retirement. When submitting an
application, you will be required to include proof that you are contributing to
a retirement/savings plan on a regular basis.
The Economizer maximizes your insurance premium
dollar by providing a cost contained plan of disability income
insurance. The duration of disability benefits is the same as
for LifeStyle-65 plans.
Disability benefits under this plan can span your entire
working career. For disabilities which commence prior to age
60, benefits are paid until age 65. For disabilities commencing
between the ages of 6065, benefits are paid for two years or
to age 65, whichever comes first. For disabilities commencing
after age 65, benefits will be paid for one year.
The difference between the Economizer and other Trust
endorsed plans of Income Protection insurance is that the
definition of disability becomes more restrictive after the
first two years of benefit payments under this plan.
(A) For the first 27 months, you are considered totally
disabled if you are completely unable due to sickness
or bodily injury to perform the duties of your normal
occupation and not performing any other occupation.
(B) After the first 27 months, you would be considered
totally disabled and benefit eligible if you are unable
due to sickness or bodily injury to perform any
occupation for which you are reasonably suited
by education, training or experience.
Other Trust endorsed Income Protection plans incorporate
a more liberal definition of disability commonly referred to as
a your own occupation definition for the entire episode of
disability (definition A above).
This Plan is offered with a 90 day waiting period, without
Benefit Booster and Guaranteed Insurability options. It is about
25% less costly than our LifeStyle-65 program that offers these
two features together with a more liberal definition of disability
as described above.
This Income Protection policy is designed for those members
and their spouses who have limited budgets and who wish to
implement a basic level of income protection insurance.
LifeStyle 5 or 65?
The table below which shows
the likelihood of a continuing disability for an individual
who has been disabled for 90 days should be helpful as you
consider both plans.
Obviously, a plan providing
benefits to age 65 costs more than a plan which provides
benefits limited to 5 years.
Age When Disabled for 90 Days
People Still Disabled at End
of Two Years and 90 Days
People Still Disabled at End
of Five Years and 90 Days
Source: Insurance Commissioner's Disability Tables
Such coverage encourages a person receiving benefits to gradually return to work without
losing disability benefits. If immediately following a period of total disability which has lasted 6 months or longer you
return to work but your earnings are less than 75% of pre-disability average earnings, the plan will pay an amount
equal to the percentage of your lost earnings applied to the disability benefit for the next 12 months. For instance, if
you were receiving a $5,000 monthly benefit and your post disability income derived from employment is 75% of your
income prior to disability, the plan will pay $1,250 a month for the next 12 months (25% of $5,000).
All Trust Income Protection
plans now include a three month survivor option. If you
should die while receiving Total Disability benefits the plan
will pay your survivors a sum equal to 3 monthly benefits.
The benefit will be paid to your surviving spouse and
children, or your brothers and sisters, otherwise to the
executor or administrator of your estate.
Liberty Mutual is a leader in
providing rehabilitation resources to disabled insureds to
help them get back to work. Liberty Rehabilitation
Specialists review case histories to select those individuals
who they feel would benefit from rehabilitation efforts.
These resources are free of charge and participation is
voluntary. Participation in these programs will not cause
disability benefits to terminate.
Successive Periods of Disability Provision
This provision recognizes that
if an insured suffers a period of successive disability, from
the same or related cause, benefit payments will begin
again immediately without the imposition of a new benefit
waiting period. Successive periods of disability due to
the same or related causes will be considered one period of
disability unless they are separated by the insureds return
to active work on a full time basis for at least 6 months or
Waiver of Premium
In the event of totaldisability for six consecutive months, premiums due are
waived until the next quarterly payment date which follows
cessation of disability benefits.
Cost effective Group Rates
A practitioner age 40 can replace $5,000 of monthly earnings for just $616 a year!
Unlike other Income Protection plans, rates are the same for
women and men.
Plan Provisions, Exclusions and Limitations
Benefits will not be paid for disabilities due to:
- Benefits are payable only
for periods of disability for which you are under the
care of a fully licensed physician and cannot perform
the duties of your occupation or profession.
- Benefits will not be paid
for disability caused by pre-existing conditions
which existed prior to being insured by this
insurance for which treatment, including medication
or prescriptions, was rendered or charges were
incurred within six months before the effective date
of insurance. However, pre-existing conditions are
covered after six months (one year for mental illness
or emotional disorder) has elapsed where no treatment
has been rendered or charges incurred for such
illness (this includes medication or prescriptions).
- The maximum length of
time for which benefits are payable for any one
period of disability varies according to age at the
time disability begins and the plan you select.
- Benefits for a disability
resulting from alcohol, drug abuse, or mental illness
will not be paid for more than 24 months. Benefits
will be paid for disabilities resulting from these
conditions only if you enter and remain active in a
program of rehabilitation designed to cure or
minimize the condition.
- War or act of war;
Pregnancy, unless the disability is due to
Intentionally self inflicted injuries while sane or
Drugs that are voluntarily taken, ingested or
injected, unless prescribed or administered by a
- Active participation in a
riot or committing or attempting to commit an
For LifeStyle-65 and Economizer
Termination of Coverage
If you are totally disabled, you will receive
benefit subject to the waiting period selected,
social security disability benefits; and disability
receive under any state or federal law (but individual insurance you may also own) so
disability income benefits do not exceed 70%
prior to receiving disability payments.
Your Income Protection insurance will terminate on the earliest of the following dates:
- The date you cease to be a member of the APA;
- The date the master policy held by the Trustees is terminated;
- The date you fail to make any agreed payment of premium within the 31 day grace
- The date you cease to be gainfully employed on a regular basis of at least 20
hours per week;
- The date you become a member of the armed services of any country.
APA members who are eligible to enroll in any programs of Income Protection
Insurance described in this brochure must submit evidence of insurability when making application. The insurance will not
become effective until the first day of the calendar month following the date that Liberty Life Assurance Company of
Boston determines that such evidence is satisfactory.
Who may apply for Trust Group Income Protection Insurance?
You are eligible to apply if you are a member of the American Psychological
Association, are under age 65, and reside in the United
States or Canada.
premium is due on each May 1. Quarterly premiums are due on
each May 1, August 1, November 1, and February 1. In the
event you enter the plan on any date other than on the first
day of a premium due date, the premium will be prorated to
the next quarterly or annual premium due date.
When you have a claim
Detailed information regarding claims procedures is issued with each
new certificate of insurance. Promptly report all claims to
Liberty Life's office in Dover, New Hampshire.
Administrator APA Group Insurance Plans
Liberty Mutual Insurance Company
P.O. Box 1525
Dover, NH 03821-1525
This plan is
underwritten and administered by Liberty Life Assurance
Company of Boston, a member of the Liberty Mutual Group. It
is the only Income Protection program endorsed by the
American Psychological Association Insurance Trust and has
been in effect for 40 years. A Group Income Protection Policy
has been issued to the Trustees of the APA Insurance Trust.
Each participating member receives a certificate of insurance
outlining the benefits to which one is entitled under the
descriptions here are necessarily brief and are subject to
provisions that can only be expressed completely in the
certificates of insurance which are available upon request
and which will be sent to you when coverage begins.