I'm looking at the email from the R&I committee, dated 8/31, about changes to the FDX MEC LTD plan. Sounds like many people dropped the plan when the premium more than doubled, and they are trying to get people back into it.

It appears as if it may now be a good deal for some. With age banding, I would expect it's going to be much cheaper for younger people, but big bucks for the older groups. We will see, apparently no premium increases until 2020....but what then? Another interesting thing is the special enrollment period that if you have an FAA approved physical, you can enroll without evidence of insurability. Prior to this, they made it extremely hard for people with any possible issue to enroll if you hadn't enrolled shortly after getting hired (assuming it was because they were trying to discourage older people from enrolling, since they collect on this policy often). I know people who have been turned down for this policy multiple times, but apparently now they can apply in this special enrollment period and get it?

This is a really good policy and something to consider. It was pretty unattractive when the premiums jumped. But I wonder what happens if this policy is not supported by premiums in the future.

 

Any LTD plan is very expensive and not worth paying the extra money, until you need it. At that point it becomes the cheapest most worthwhile item you have ever paid for.

 

Most definitely. However, there are some choices, and many people dropped the plan when it more than doubled. I dropped mine and went with the ALPA policy with level premiums. But now this seems like something to reconsider. Particularly for people who weren't able to get a policy at all, with their open enrollment period.

 

Like any other insurance, it’s only a good deal if you need it.

I dropped to the two year deal after the massive premium increase. Have they published the new prices?

 

I have not seen the new age banding prices yet. However, I've had issues logging into ALPA's website, so I'll check when I'm able to logon.

 

I don't see any new rates, now that the website is up, they are as of Jan 1st, 2018. However, they did say that no rates would go up through 2019. Makes you wonder if the rates on Jan 1, 2020, will skyrocket for people in the older age groups, and go way down for the younger ones. No doubt the younger groups are the ones they want to sign up for this.

 

Maybe the rates will be out when they open up enrollment. And you’re absolutely right, they want younger people to sign up. Generally healthier and make less (less to payout). However, they’d have to pay out the benefit for longer (again assuming they’re on disability until 65, which certainly isn’t always the case).

 

True. They could have to pay out for over 30 years for a young person. But I'm sure those rare cases make it worth pursuing them. They made it really tough for me to get it as an older person...rejected for trivial reasons, doctors letters required. But now, open enrollment? Wonder if that also means no questions or rejections. If so, and I was someone who thought it was likely I'd collect, I'd jump on this policy.