Long Term Disability Insurance
Long Term Disability coverage is a voluntary benefit provided through The Standard and the employee pays 100% of the premium cost. New employees are eligible for coverage on the first day of the calendar month following their hire date. The coverage is guarantee issue (no medical review) if elected at date of hire. If an employee applies for long term disability insurance after their initial hire date, the employee will be subject to a medical review and may be denied the coverage. For more detailed information, please refer to the Long Term Disability Insurance Brochurefrom The Standard.
There are two Elimination Periods - 90 days and 180 days. The elimination period is the number of days that an employee is absent from work before the coverage begins to replace their monthly income. For example, if an employee elected long term disability insurance with a 180 days elimination period then the employee would have to be work off work 180 days before the monthly benefit would begin.
How is the LTD benefit amount calculated? The LTD benefit amount is determined by multiplying your insured predisability earnings by a specified benefit percentage which is 60%. The amount is then reduced by other income you receive or are eligible to receive while LTD benefits are payable. The other income is referred to as deductible income. Refer to the Long Term Disability Insurance Brochure for "What is considered deductible income?".
The cost for LTD coverage is based on your annual earnings, your age and whether you elect a 90 Day or 180 Day Elimination Period.