Long Term Disability Insurance

Have you ever had to decide what to do about an employee with an extended illness who has exhausted all medical, holiday, and personal leave? This can be the most difficult decision an executive or a board ever has to make. We offer a group long-term disability plan as part of our total benefits package. This benefit is available to groups as small as two. Coverage is provided by Lincoln Financial Group

An employer-paid Long-Term Disability (LTD) program can eliminate the need for these difficult decisions. Group LTD plans cover all full-time (over 30 hours), permanent employees. These plans are designed to start paying benefits after a minimum required period of disability (the elimination period), commonly either 90 or 180 calendar days, and to pay for a “long-term” (either until the employee can return to work or until age 65). LTD plans provide partial salary replacement (usually 60%) during an extended period of disability when the employee cannot work.

An additional employer benefit of an LTD insurance policy is that the insurance company decides whether the employee is entitled to disability payments and the insurance company will make the decision as to the appropriate time for the employee to return to work. By having an independent, objective professional deal with the employee, the nonprofit executive avoids having to make tough decisions regarding the severity of the disability or illness and the employee’s ability to do his or her job.

LTD is an important benefit for the employee. The inability to receive a paycheck during a disabling illness or injury would surely bankrupt most staff members in a relatively short time.