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Long Term Disability

1. What is long term disability (LTD) coverage?
   Long term disability coverage provides wage replacement to individuals who experience wage loss due to a disability.
2. How do you obtain long term disability (LTD) coverage?
   Long term disability coverage can be obtained either by a group or individually. Group coverage can be offered through an employer, professional group or association. Individual coverage can be purchased directly from an insurance broker and is based on your age, occupation and health status.
3. How much income replacement will I receive from long term disability (LTD) coverage?
   Long term disability coverage provides a monthly income replacement that is either a percentage of gross pre-disability earnings or a specified dollar amount. Most policies replace 60% to 66.67%.
4. What is a pre-existing condition exclusionary period in long term disability (LTD) coverage?
   A pre-existing condition is any medical condition for which “medical care” was received three to six months prior to the coverage effective date. LTD plans may have a pre-existing conditions exclusionary period. During this period of time, an individual's prior medical condition(s) will not be covered by the policy. However, after the pre-existing exclusionary period expires, the condition becomes covered under LTD coverage.
5. How long does a pre-existing condition exclusionary period last in long term disability (LTD) coverage?
   In long term disability coverage, a pre-existing exclusionary period usually lasts between 12 to 24 months.
6. Does long term disability (LTD) coverage provide health coverage too?
   No. Long term disability coverage only provides wage replacement.
7. How much does long term disability (LTD) coverage cost and who pays for it?
   If you have individual LTD coverage, you will be responsible for all costs. If you have group LTD coverage, you may be responsible for no cost, a percentage of the cost or a set premium. With employer-sponsored LTD coverage, you may be responsible for the amount that is above what the employer elects to pay. This is determined by employer agreements with their insurance companies. Your employer, Human Resources Department or personnel staff can explain these benefit details.
8. How long does long term disability (LTD) coverage last?
   LTD coverage can last from one year to age of retirement – usually 65.
9. How do I stay enrolled/eligible for long term disability (LTD) coverage?
   If you have employer-sponsored LTD coverage, you will need to meet the actively at-work requirement, which entails working a minimum number of hours per week. If you are unable to meet the active work requirements due to a disability, and you have passed the service wait and pre-existing condition exclusionary periods, LTD coverage may be used to replace a portion of your wages.
10. Does what I have in the bank or what I own affect my eligibility for long term disability (LTD) coverage?
    No. There are no income or assets restrictions for long term disability (LTD) coverage.
11. What is the difference between long term disability (LTD) coverage and state and federal disability programs such as Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI)?
    Long term disability coverage is private insurance offered through individual or group (employer, professional group or association) plans. LTD coverage does not have income and assets restrictions. Coverage varies between insurance policies. State and federal wage replacement programs are public benefits - Supplemental Security Income (SSI) and Social Security Disability Income (SSDI). To be eligible for public income replacement, an individual does not have to belong to a group but must meet specific requirements.
12. Can I keep my group long term disability (LTD) coverage if I no longer belong to the group that provided the benefit?
    Maybe. Some group LTD plans are portable if you are not disabled when you leave the group. Be sure to check your summary plan description to see if the plan has a portability option.
13. What else should I know about long term disability (LTD) coverage?
    If you reduce work hours due to a disability and the appropriate provision is included in your policy, you may be eligible to receive partial benefits. Check the summary plan description for details. Also, you may want to consider consulting a benefits planner about State Disability Insurance (SDI) or Social Security disability programs such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI)