Understanding Your Benefits

Waiver of Premium is a provision in your contract(s) in which the Insurer may waive premiums for certain benefits for disabled employees. If an employee becomes totally disabled before the earlier of age 65 or retirement, and remains totally disabled for at least six consecutive months, his/her premiums for Life Insurance, Dependent Life, AD&D, and LTD coverage may continue without payment of premiums for as long as the employee medically qualifies, and until the earlier of returning to work or age 65.

• As the Plan Administrator, you have an obligation to ensure that all disabled employees (whether benefits are paid under this benefit plan or by Workers’ Compensation) receive the forms necessary to apply for Waiver of Premium within the required timeframes.
• Proof of “total disability” is required and must be submitted within 9 months of the disability and periodically thereafter.
• If your Life Insurance and Long Term Disability benefits are covered by the same Insurer, the Insurer will automatically approve/deny the Waiver of Premium provision when assessing the LTD claim.
• If your LTD and Life Insurance benefits are covered by different Insurers, a separate application for Waiver of Premium may be required.
• Starting the first of the month following the date of approval, your Billing Statement will reflect volumes for disabled employees who qualify for Waiver of Premium, but there will be no charge for the qualifying benefits.
• Extended Health Care, Dental Care, Critical Illness and EFAP benefits do not fall under the Waiver of Premium provision, and these premiums must continue to be paid during an employee’s disability.
• If your group plan terminates with GroupSource, disabled employees who qualify for Waiver of Premiums will continue to have coverage for Life and Disability benefits, but not AD&D.