AIG
AIG Benefit Solutions, the group benefits division of American International Group, Inc., has introduced Income PLUS, an innovative new rider that provides a one-time, lump-sum payment in the event of a disabling condition.
The Income PLUS benefit is unique in the industry as a lump-sum benefit that is not offset or negated by any other sources of income and is paid in addition to the monthly benefits offered under the long term disability product. The Income PLUS benefit can be used by employees as they see fit, to help pay debt or medical bills or to provide a financial cushion during a period of disability.
The idea for Income PLUS came from research showing that a significant number of disabled employees face serious financial burdens by the time they get through their LTD elimination period, which is usually six months. While short term disability helps cover some of the income shortfall during this period, employees who transition to long term disability benefits often face higher debts by the time their LTD benefits begin.
The Income PLUS rider benefit is payable immediately after the 180-day elimination period is satisfied. It offers what amounts to 12 months worth of benefit at 10 to 40 percent of income, paid as a lump sum in addition to the monthly LTD payments. The percentage paid under the Income PLUS rider varies according to the rider option selected by the employer.
The total income replacement maximum available to employees is 80 percent, including the underlying LTD plan and the Income PLUS rider benefit. For example, if the underlying long term disability plan offers 60 percent income replacement, then the Income PLUS Rider options are 10 or 20 percent.
