Most employees, in the event of a disability, don't have enough savings to cover their monthly expenses over an extended period of time. Long-term Disability insurance provides the financial protection they need.
Financial Protection
Long-term disability insurance doesn't pay full wages, but it does pay up to 60% of base earnings. That 60% helps provide a steady income until an employee recovers and can return to work. And while the cost of coverage does increase for older employees, so does the possibility of experiencing a disability.
Plan Design Features
- Annual incomes up to $200,000 can be fully covered.
- Premiums may be paid by the employee, by the employer, or the cost may be shared.
- Benefit payments begin after six months of total disability.
- Monthly benefit payments end when the participant recovers from disability or reaches age 65, whichever is sooner. (Active employees over age 60 are covered up to age 70 according to a benefit schedule.)
- Benefit payments are not reduced by any individual disability insurance a participant may have.
- The plan includes a special "own occupation" benefit for executives of up to five years.
| Design Features |
Schedule |
| Type of Plan |
Based on earnings |
| Monthly Benefit Payment |
60% of base monthly earnings |
| Disability Payment Begins |
After 6 months of total disability |
| Disability Payment Ends |
Up to age 70 |
| Maximum Monthly Benefit Payment |
Up to $10,000 per month depending on monthly income |
Additional Benefits
Each covered employee is automatically enrolled in the "Work-Life Program" which is an employee assistance program (EAP) including telephone and face-to-face consultations for a wide-range of topics.
Employees are also covered around the clock with "24-Hour Travel Assistance" when 100 miles from home or in a foreign country. This special benefit includes medical consultations, transportation benefits, legal and interpreter referrals and many more benefits all at no additional cost.
