Long-Term Disability (LTD) Insurance

LTD is intended to protect your income for a long duration after you have depleted short-term disability or any sick leave your company may offer.

Features of the plan

  • Offers 66 2/3% of your income, up to a maximum of $8,000 a month of tax free benefit.    
  • The rate is the same for everyone, but the premium is tied to your income (because your benefit amount is based on your income).  Benefits begin 120 days after the disability occurs.
  • Mental/nervous and substance abuse disorders are subject to a two year limitation. However, dementia and Alzheimer’s are covered for the full benefit period.
  • To Social Security Normal Retirement Age. For example, if you are 40, your SSNRA is 67, so you will have 27 years of benefit if you remain disabled. If you have coverage and are currently over 61, there is a benefit period table that reduces from 5 years to 1 year.  You can maintain coverage as long as you are working regardless of age, and the benefit period will never be less than a year.
  • A disability due to a pre-existing condition is excluded. A pre-existing condition is an injury or sickness that occurred during the three months prior to your effective date of coverage. After you are covered for a year, no pre-existing clause will apply.