Why employees need Long Term Disability (LTD)
LTD is an income replacement program for those employees who become disabled and are unable to work. Common disability reasons include injury, recuperation from surgery, major illness, and mental health issues. LTD helps you pay your mortgage, rent, and other bills and debt obligations when you don't have a salary coming in.
What you will receive as a benefit if you are a LTD member and become disabled
You will receive 55% of your earnings up to a maximum of $10,000 per month on a tax free basis. The benefit will be offset by other income sources, such as Social Security Disability, Workers' Compensation, accumulated sick leave and retirement benefits..
How other income affects your LTD benefit
The minimum monthly benefit, regardless of offsets (including Social Security disability, Workers’ Compensation, salary through a sick bank, and accumulated sick leave and retirement benefits), will be $100 or 10% of your gross monthly benefit amount, whichever is greater
Why you need the Long Term Disability (LTD) program even if you have accumulated sick time
The LTD program's benefits begin after a 90-day waiting period. During the 90-day period, you may wish to use your sick time. After that time, if you have been approved for the benefit and you still have sick time you can use up the remainder of your sick time and collect the minimum benefit. Or, you can elect to not use your sick time and collect the maximum benefit:
Monthly salary $1,200 per month
Gross monthly benefit $1,200 x 55% = $660 per month
Less Workers Compensation -$300
Net Monthly Benefit $360
How to file an LTD claim
Call Unum, the LTD carrier, at 1.877.226.8620 within 90 days of your disability to initiate your claim. The claim form Unum will send you includes sections that you and your physician complete before mailing or faxing it back to Unum.
When to file your LTD claim
If you become unable to work due to an illness or injury, do not wait to file your claim. As soon as you stop working and have been out of work for at least 30 days or are expected to be out at least 90 days, call Unum at 1-877-226-8620 Option 1. If you wait more than 180 days after your disability begins, you may not be eligible to receive benefits.
If you return to work you may still be eligible for LTD benefits
In many instances, you can still qualify for LTD benefits if you are working part time because of your illness or injury. If you are working part time and are unable to work at least 20% of your normal scheduled work hours, you may qualify. Call Unum to initiate a claim and to review your eligibility. If you are already receiving LTD benefits and your health care provider approves you to work part time, Unum will work with you and your provider to help you with the transition.
If you are injured at work you can file for LTD benefits
LTD covers occupational and non-occupational illnesses and injuries. If you are collecting workers compensation, you are eligible to file for LTD as well.
There are no age limitations for collecting Long Term Disability benefits
As long as you continue to meet the definition of disability, you will receive benefits according to the maximum period payable schedule: