Benefit Plan Plan Basics (LTD/Life/AD&D Insurance)

Overview

The FCMM Benefit Plan combines Long Term Disability (LTD), Life, and Accidental Death and Dismemberment (AD&D) insurance as a provision for the church and the staff member. If a disability or death occurs, the benefit payments help the staff member with financial needs and give the church flexibility of resources to continue to fulfill ministries until the staff member is able to return to duties.

See the Benefit Plan Coverage Overview for a summary.

Features

Long Term Disability Insurance

  • Group disability is a benefit made available through an employer. Eligible participants must be in active employment at least 25 hours per week at an EFCA church or other qualified “like minded” organization in the United States.
  • In the event of a disability, the source of the premium payment determines the tax status of benefits. Benefit payments are taxable income when the coverage has been provided as a non-taxed employee benefit. Benefit payments are considered non-taxable income when the coverage has been paid by the employee from after tax income via payroll deduction.
  • Definition of disability is based on the inability to perform duties of the staff member’s “own occupation” for the first three years of disability. This contrasts to a lesser coverage of “any occupation” in many plans.
  • For calculation of eligible compensation base for benefits, the housing allowance of qualifying pastors is included. This provision, not usually found in standard LTD plans, has been specifically tailored to benefit churches and clergy participants.
  • For calculation of eligible compensation base for benefits, the housing allowance of qualifying pastors is included. This provision, not usually found in standard LTD plans, has been specifically tailored to benefit churches and clergy participants.
  • Coverage begins the first of the month following the employee’s eligibility and ends on the date of termination. Severance pay is not considered active employment.
  • Some pre-existing condition limitations apply
  • Employees enrolling in LTD are required to also enroll in either the $10,000 or $50,000 Life/AD&D insurance volume.

Full details on the LTD insurance are included in the plan certificate.

 

Life and Accidental Death & Dismemberment Insurance

  • Group Term Life/AD&D Insurance volumes are offered at two levels: $10,000 or $50,000. This benefit is reduced by 65% starting at age 70, and to 50% starting at age 75.

Full details on the Life/AD&D insurance are included in the plan certificate.

Benefits

Long Term Disability Insurance

  • In the event of a qualifying disability, the LTD policy will pay the individual 60% of his or her qualified monthly salary up to $8,500 per month.
     
  • A Spousal Disability Rider is included, offering a benefit of up to $1,500 per month payable for up to 24 months.
     
  • A Severe Disability Rider is also included, providing an additional 20% benefit up to a maximum of $1,000 per month, in the event of the loss of two activities of either daily living or cognitive impairment.

 

Life/AD&D Insurance

  • The life insurance has an Accelerated Benefit provision: In the event of terminal illness while insured by the plan, the insurance carrier will pay up to 50% of the life insurance benefit one time.