As the Standard reps visit your site, feel free to ask them questions about any of the information below. Did they visit your site and you missed them? The Standard 800 number is listed at https://www.standard.com/cta/manteca
One thing I hear is a compare and contrast for Disability Insurance between Standard Insurance and American Fidelity. The points below is what I came up with:
Pre-existing conditions are covered WITHOUT restrictions under the Standard Plan, including pregnancies(10-12 weeks). American Fidelity does not cover pre-existing conditions.
Standard pays 75% of your gross income. American Fidelity pays 60%.
If your salary increases, your benefit would increase as well. Standard GUARANTEES paying you based on your current salary even if you or the district fail to update it. American Fidelity doesn’t do this. You would have to notify them every year. The district doesn’t do this for you.
On or off the job disabilities are covered with the Standard plan. American Fidelity does not cover on the job claims.
EVERTYHING is covered in the Standard Plan. American Fidelity sells riders or extra policies to cover accidents, cancer, etc…
Standard guarantees to pay your benefits based on your current salary even though you or the district haven’t updated your income with Standard. American Fidelity will pay based on whatever salary they have listed in their records. It is up to you to update your current salary, and make sure they know this before the disability takes place.
If you ever have a dispute with Standard, you can appeal the decision to a panel of CTA members whose decision is final.
Some will say that American Fidelity pays until you turn 65. That’s true. But read the fine print. You don’t have to read the fine print with Standard!
American Fidelity claims they cover until age 65, but how they cover is an “up to” benefit. That means, they will max out the benefit at a percentage. What’s common is “up to 10% of the members income.” Also, note the fine print, they’ll state “minus-deductive income.” That means they can reduce benefits if there are medical payouts, insurance settlements, or “any other earned income like investment dividends, rental property income, etc...” These deductible factors leave the risk very limited to the insurance company and members may see an actual annual payout of 1% of their salary. The other factor is these payouts are normally up to the time the member would have already started their STRS retirement.
I would caution you to do the individual math to determine how much actual payout they’d receive. Sound confusing??? Standard isn’t!
If you have Standard and can’t ever return to work, you would receive two years of pay and then transition to CalSTRS Permanent Disability.