Long Term Disability (LTD)
An employee-paid benefit program offered by a private insurance carrier designed to provide income replacement in the event you become disabled due to an illness or injury and cannot perform the duties of your normal job (own occupation), or maybe any job, for a long period of time (6 months or longer). LTD begins where short-term disability (STD) leaves off. Once STD benefits expire (generally after three to six months), the LTD policy pays a percentage of your salary, depending on the policy. You will then receive benefits for two to five years or until you turn 65. There is generally a 24 month benefit Limitation for Disability due to Mental Disorders or other Limited Conditions. Most LTD plans are governed by ERISA (federal law) and are complicated. Claims are offset by certain “other deductible income” available to the employee. Other deductible income includes but is not limited to: work earnings; sick leave; workers’ compensation; state disability income; Social Security; disability and retirement benefits under a State’s retirement plan; other group insurance benefits; third party settlements and any amounts received by compromise, settlement or other methods. To learn more, please visit our ERISA Disability Claims page.