Long Term Disability Questions
How long is the waiting period after an injury or illness before long-term disability takes effect?
There is a six-month waiting period from the date last worked.
How long does long-term disability last once I start collecting?
If under age 60 at the time of disability, it will continue to age 65. Between the ages of 60-64, long term disability benefits will last for 5 years. Between ages 65 - 68 benefits will last until age 70. Age 69, benefit will last for 1 year. You will receive this benefit if you are totally disabled.
Are long-term disability payments taxable?
If you pay your long-term disability premiums with pre-tax dollars, your benefit will be taxed. If you pay your premium with after-tax dollars, your benefit will not be taxed. As income will be lower during a period of disability, most employees choose the after-tax option to receive a benefit that is not taxed.
What's the difference between the high and low options?
High option pays 66 2/3% of your salary and the LTD carrier will continue to pay your Defined Contribution Plan and a cost of living adjustment every year. Low option pays 50% of salary and the LTD carrier does not pay into the DCP or pay a cost of living adjustment.
How is disabled defined?
When, according to a doctor's opinion, an employee can no longer perform the essential requirements of their job, they are considered disabled.
Will long-term disability also pay for re-training me for another job?
Job re-training is possible on a case-by-case basis.
Will Social Security disability payments reduce my long-term disability policy payments?
Yes. Social Security and LTD will coordinate with one another to ensure an employee will not receive an amount greater than 66 2/3% or 50% of salary.
How much does long-term disability cost?
Click here to view the rate sheet.
What are the minimum/maximum benefits?
Can I work part-time while on disability?
No. Once the employee gains any type of employment, the LTD benefit ceases.
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