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Long Term Disability

Group Long Term Disability

Insuring your income could be one of the most important things you ever do.It is natural to insure your home, car and other valuables.Why not protect the funds that provide these items - your income?If you were to get sick or hurt were unable to work, would your Group Long-Term Disability (LTD) insurance plan compensate you enough to cover your monthly bills?

Here are ten questions to help you develop a better understanding of your Group LTD insurance coverage.

  • How long must I wait before collecting Group LTD insurance benefits?
  • What percentage of pay if any will I receive during the waiting period?
  • If partial benefits are provided, do I have to be totally disabled during the waiting period?
  • What percentage of my pay will I receive from this benefit? What is the maximum monthly benefit? Is bonus income or incentive pay covered?
  • How long will the plan cover me in my chosen occupation?
  • Will the plan pay benefits if I am working at a reduced capacity?
  • To what extent will I have to pay taxes on benefits received?
  • To what extent will I be responsible for medical insurance premiums and other benefits previously provided by my employer?
  • Will my benefits be adjusted for cost of living increases on an annual basis?
  • Can I retain my coverage should I change employers?

If the answer to these questions are of concern to you, contact The Hancock Group at (814) 944-8849 for information on how you can insure your most valuable asset, YOU!

Individual Long Term Disability

Long Term disability plans help protect employees in the event of a permanent and total disability.

Long term disability benefits are paid monthly which is different from short term benefits which are paid weekly. Usually, the LTD plan will have a 90 or 180 elimination period, the length of time you must remain disabled before you can go on claim.

Benefits will be paid for as long as you remain disabled up until age 65 or nowadays, your normal retirement date as defined by social security. Your particular benefit will be calculated as a percentage of your gross income. Normally those percentages are 60% or 66 2/3%.

Another important feature of a long term disability program is residual benefits. These are benefits that you would receive if you are only partially disabled or you have just returned from a total disability and are not quite 100%. Usually, you must have a reduction of income of at least 20% in order to qualify for residual benefits.