Long-term Disability Policy Template

About Long-term Disability

What is Long-term Disability Insurance?

Long-term disability (LTD) insurance is a type of insurance that provides financial assistance to employees who are unable to work due to a long-term illness or injury. LTD policies typically provide a portion of an employee's salary for a specified period of time, often until the employee is able to return to work or reaches retirement age. LTD benefits are tax-free and are intended to help employees cover their living expenses and other costs while they are unable to work.

Why We Have an LTD Policy

Our company values the health and wellbeing of our employees, and we believe that providing long-term disability coverage is an important part of supporting their financial security and peace of mind. As such, we have implemented a long-term disability policy.

We believe that providing long-term disability coverage is an important part of supporting our employees and their families, and we are happy to provide this benefit. We encourage all employees to familiarize themselves with this policy, and to contact their manager or human resources if they have any questions.

How LTD Works

Our LTD Policy

Under this policy, employees who become unable to work due to a qualifying long-term disability will be eligible to receive a portion of their regular salary for a specified period of time.

• Duration: The benefit will be paid for up to 24 months, as long as the individual remains disabled and meets the policy's definition of disability.
• Amount of benefit: The benefit will be 60% of the individual's pre-disability income, up to a maximum benefit of $5,000 per month.

LTD Qualifications

In order to qualify for LTD benefits, you must:

1. Have met the 90-day employment "waiting period" or "elimination period."
2. Be unable to work for 90 days or more.
3. Provide medical documentation of your condition. This may include medical records, test results, and other information.
4. Participate in rehabilitation or other efforts to help you return to work.

LTD Exclusions

Our long-term disability policy may have the following exclusions:

1. Pre-existing conditions: Many LTD policies exclude disabilities that result from pre-existing conditions. A pre-existing condition is typically defined as a medical condition that you were aware of or received treatment for before your LTD policy went into effect.
2. Self-inflicted injuries: LTD policies often exclude disabilities that are the result of self-inflicted injuries, such as suicide attempts.
3. Illegal activities: Disabilities that result from illegal activities, such as drug abuse or criminal behavior, may also be excluded from coverage under an LTD policy.
4. War or terrorism: Some LTD policies exclude disabilities that result from war or terrorism.