Long Term Disability
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.
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.
Additional Benefits
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.