Long Term Disability
Employees often wonder what would happen to their financial wellbeing if they were injured or too sick to work. By providing Group Long Term Disability insurance, business owners have a powerful tool that can help alleviate those concerns. With Long Term Disability coverage as part of their benefits package, an organization also enhances its ability to attract and retain talented professionals.
A Safeguard For Financial Wellbeing
- Flexible plan designs can be customized for a company’s needs and benefits budget.
- Employee earnings may be covered for injuries and illness that occur at work or elsewhere.
- LifeMap handles FICA tax and W-2 paperwork at no charge.
- The return-to-work incentive helps get valued employees back on the job, even if it’s part-time.
Protection From Financial Disaster
The plan can provide around-the clock coverage for disabilities that result from illness or injuries. It covers employees who are unable to return to work due to their disability and those who become partially disabled but can work some of the time.
Organizations can create a plan that fits the needs of their workforce and their company, and customize their offerings from a wide variety of benefit options:
- Earnings replacement percentage: Typical benefits cover 50% or 60% of an employee's monthly income. Other options are available.
- Benefit elimination period: Benefits typically start at 90 or 180 days after the disabling illness or injury. Other options are available.
- An accumulation period of up to TWICE the elimination period: If an employee returns to work during the Elimination Period but cannot return to work on a continuous basis, the days that they are disabled can be used toward satisfying the elimination period.
- Maximum benefit period: Companies can opt for a coverage length of two or five years, or up to the employee’s Social Security Normal Retirement Age.
- Regular occupation benefit period: This coverage can match the maximum benefit period for ultimate coverage, or a business can limit benefits to a shorter period of time (two to five years) for employees who are unable to perform the duties of their regular occupation. After this period, employees must be unable to perform the duties of any gainful occupation they are reasonably suited for by training, education or experience in order to continue receiving benefits.
- Partial disability benefits: Include protection for employees who become partially disabled, meaning those who can perform all of their job duties some of the time or some of their duties all of the time. And we can offer our Progressive Partial formula that allows a working, disabled employee to earn up to 100% of their pre-disability earnings.
- FICA tax: LifeMap pays the employer portion of the FICA tax for employees receiving Long Term Disability benefits, and submits payment to the Internal Revenue Service on a company's behalf.
- W-2 administration: We prepare all W-2 information at the end of the year for employees receiving a disability benefit.
Incentives to get back on the job
To help keep things running smoothly, companies need their valued workers back on the job as soon as possible. The plan is designed to encourage employees to return to work at a healthy pace, not to penalize them.
Disabled employees who return to work part-time can receive benefits in addition to what they earn on the job.
Under the return-to-work incentive, benefits will be reduced only if the combined benefit and partial income exceed the employee’s pre-disability earnings.
If you’re interested in Long Term Disability insurance for your organization, contact your insurance producer.
If LifeMap Long Term Disability is right for your group client, contact a sales executive today!