Through the Standard Insurance Co., LTD provides disability income for covered individuals to assure regular income if they cannot work for an extended period of time because of a covered illness or injury.
- LTD pays for 60 percent (up to $6,000) of a covered individual’s monthly pre-disability earnings, based on hourly rate of pay, after a 90-day benefit waiting period.
- Benefits are coordinated with Workers’ Compensation, retirement benefits, Social Security and certain other types of deductible income.
- Employees can combine accrued paid leave with their LTD benefit to bring their total disability benefit up to 100 percent of their pre-disability earnings. If paid leave and the LTD benefit combined are more than 100 percent of the employee’s pre-disability earnings, the LTD benefit will be reduced until the total benefit is equal to 100 percent.
You should know the following about this insurance option:
- Employees can apply for LTD at any time during the year, but after their initial eligibility period coverage is subject to medical underwriting and Active at Work Requirements.
- Premiums are based on the employee’s age and rate of pay and automatically adjust.
- There is a 90-day benefit waiting period after you are disabled before any benefits are payable
- Since LTD premiums are on an after-tax basis, any benefits you receive will not be taxed as income to you.
- If an employee is on leave that qualifies as FMLA leave, he/she may restart this coverage without medical underwriting upon their return to work.
Coverage ends on the date of separation/retirement and cannot be continued when employment ends.
LTD Claims, 800-368-1135
Long Term Disability Brochure (PDF)
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