This information is intended as a general summary of the life insurance and long-term disability (LTD) coverage available through MUST.  For specific information about your life insurance and LTD benefits, refer to the Certificate and Summary Plan Description issued to each policyholder by Standard Insurance Company.

LIFE INSURANCE

Basic Life/AD&D Insurance

Montana Unified School Trust (MUST) provides $10,000 in Basic Life and Accidental Death and Dismemberment (AD&D) insurance to active employees who are enrolled in the MUST health plan. There is no cost to the member group or to the participant for this basic coverage.

Additional Life and AD&D Insurance Options

Your member group may also have elected to offer one or both of the following life insurance options to active employees who work at least 17.5 hours per week. See your district clerk for information specific to your group.

• Under Option 1, the member group elects a set amount of coverage for all participants. The premium is paid entirely by the member group. Coverage is available in $10,000 increments, up to a maximum amount based on the group’s size.

• Under Option 2, participants may choose to pay for additional life insurance coverage. Coverage is available in $10,000 increments, up to four times the employee’s annual salary (not to exceed $500,000), although evidence of insurability is required for coverage amounts over a certain limit determined by group size.
• The monthly premium for Option 2 is deducted from the employee’s pay based on an age-banded scale. 
• Dependent Life in the amount of $5,000 per dependent is also available for a flat monthly rate.

Life Insurance for Retirees

Retirees are not eligible for the Basic Life and AD&D coverage that is provided to active employees enrolled in the health plan. However, retirees who had Additional Life and AD&D coverage in place at the time of their retirement may elect to continue their coverage. Rates are based on an age-banded scale, and retirees will be billed directly by the life insurance company. For retirees age 65 and over, the life insurance benefit will be reduced by an age-based percentage.

Long-Term Disability (LTD) Insurance

LTD coverage provides some financial support to employees who are no longer able to work due to illness or injury. All LTD plans include a waiting period before payments begin and pay a percentage of predisability earnings as described below.

Basic LTD Plan

Active employees currently enrolled in the MUST health plan are automatically enrolled in the Basic LTD plan. There is no additional charge to the member group or the participant for this coverage.

After a waiting period of 180 days, the Basic LTD plan pays 50% of the employee’s predisability earnings, up to a maximum monthly benefit of $5,000.

Optional LTD Plans

Member groups may choose to enhance the basic LTD coverage for their active employees by offering one of the following options. Premiums are paid by the member group, not by the participant.

Option 1:  The LTD benefit is increased to 60% of predisability earnings, and the maximum monthly benefit is increased to $6,000. The waiting period remains at 180 days.

Option 2:  The LTD percentage and maximum monthly benefit are the same as Option 1, and the waiting period is shortened to 90 days.