DI+LTC - LTD

GROUP DISABILITY

Do your employees value a stable income and supportive work environment?

GROUP LONG TERM DISABILITY (aka Group LTD, or LTD) is designed to cover the employees at a particular workplace. LTD is a basic layer of disability insurance that is typically purchased by employers for the purpose of recruitment and retention.

Group LTD is often the first line of defense in the wake of a disability, especially for W2 employees. This basic coverage is the most affordable type of disability coverage per dollar of benefit.

However, there are some limitations to Group LTD plans. Most LTD benefits are taxable since the employer typically pays for (and deducts) the premium. Taxation can reduce a benefit by as much as 50%, depending on the tax bracket of the beneficiary. LTD benefits can also be offset against other earnings, and typically cover salary only (NOT commission or bonus income).

LTD is issued on a guarantee issue basis—no medical or financial underwriting at time of application. This means it is very easy to put into place with just a few signed forms from the employer, along with a premium payment.