DISABILITY
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An illness or injury that keeps you out of work for a long period of time can be financially devastating for you and your family. Our Long-Term Disability plan is designed to help protect your financial security by providing replacement income if you are ever disabled due to a non-work related injury or illness. When you are disabled, your medical insurance generally covers most of your medical expenses, such as doctor visits, physical therapy and prescription drugs. Disability benefits can help you cover your day-to-day living expenses. This program is insured through MedMutual Life Insurance Company and is provided at no cost.
LONG-TERM DISABILITY (LTD)
LTD benefits replace a percentage of your predisability earnings, which include your base salary plus bonuses and commissions but excludes overtime and other extra compensation. Benefits begin after an elimination period of 90 days is completed. The LTD benefit is 66 2/3% of the first $22,500 of your monthly pre-disability earnings, with a maximum benefit of $15,000.
If you have a pre-existing condition that occurred within 90 days of becoming covered by the policy, you must have been continuously insured by the policy for 12 months at the time of disability for the policy to cover that pre-existing condition.
Benefits will continue for two years. If you are unable to perform the duties of your own occupation for up to two years, but can do other work for which you are reasonably trained and educated, benefit payments will cease after that two-year period. If you are unable to work in any occupation, you will need to provide additional medical support for benefits to continue.
Your disability benefit coordinates with other sources of disability income you or your dependents receive, including Social Security and Workers’ Compensation.
If you become disabled on or after age 61, benefits are based on a reduced benefit duration schedule.
Refer to your plan booklet for details such as benefit durations, pre-existing condition limitations and other terms of coverage, or contact People and Culture.
TAX-FREE OPTION
Normally, if you were to become disabled, your LTD monthly benefits would be taxable income to you, just as your regular salary is. However, these benefits can be distributed to you tax free, if you pay tax now on the monthly premium that the company pays. We refer to this as the Gross-Up Option. If you do not elect to pay tax now on the monthly premium and you become disabled, you would receive the same monthly benefit amount, but you would be required to pay federal income tax on those benefit payments.
