Long-Term
Disability Coverage
Explanation
Long-term Disability Benefit Plan (LTD):
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The LTD plan
is designed to provide monthly income benefits
for a lengthy disability.
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The monthly
LTD benefit is usually designed to begin when short-term
disability benefits end.
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This means
that most LTD plan designs will have a 26 week
or a 52 week
Elimination Period (E.P) ...
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The
Elimination Period for the LTD benefit plan
begins on the first day of disability and no
long-term disability benefits will be paid
during the Elimination Period.
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The monthly
LTD benefit amount is determined by the union in
the plan design.
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Most union
LTD plans insure for 60% of 70% of a member's base
monthly income.
-
The
Maximum Benefit Period for long-term
disability benefit plans can differ. The
union may design the group plan to have a 2
year or a 5 year maximum benefit
period. Another option is to have the disability
income pay To Age 65.
What is
the Elimination Period? (Example Only)
The period for which a benefit is payable will
commence following any accumulated sick leave or
salary continuation period and the Elimination
Period shown in the example shown below:
180
calendar days for Injury
180 calendar days for Sickness
Note:
Benefits begin on the first day following
completion of the Elimination Period.
- Benefits are not paid for days
considered "Elimination Period" (in this example,
the first 180 days of disability)
- Benefits are not paid retroactive to the 1st day
of disability.
