Long Term Disability: Overview
Long Term Disability insurance is a benefit that is generally one of the most important parts of a benefits package. Many employers do offer a long term disability program funded through a third party administrator such as a disability insurer.
If an employee is hurt off the job, worker’s compensation will not cover them. When an employee cannot work for an extended period of time, a long term disability plan can help cover a portion of the employee’s salary. Long term disability usually kicks in after a short term disability policy has run out.
A long term disability policy can be an employer or employee paid benefit.
Different long term disability plans dictate different terms for qualifications. The main terms are listed below:
- Employees need to work for the employer for a certain amount of time before coverage kicks in.
- Employees need to work full-time, usually 30 hours or more a week.
The following are part of what a long term disability plan benefits package may include:
- Percentage of monthly salary paid out up to a pre-determined monthly amount (typically between 50% – 70% of monthly salary).
- Starts typically between 90 and 180 days.
- Plan benefits can include payments up to age 65.
TripleChoicePlan proudly offers a Long Term Disability plan through UNUM.