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 Humana, Reliance Standard and UNUM.