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What is Long-Term Disability Insurance?
Long-term disability insurance (LTD) provides employees the means to help replace a percentage of lost income should they become totally disabled due to a non-occupational accident or sickness, including pregnancy or complications of pregnancy. A typical LTD policy provides employees with a predetermined percentage of their weekly or biweekly salary for two years, five years, or until retirement (after any applicable waiting period). There is usually a maximum weekly benefit allowed so employees cannot earn more on disability than they could if they returned to work.
Who pays for Long-Term Disability Insurance?
The long-term disability insurance offered by MDSIS-Spring is a voluntary product, which means employees have the option to enroll. The voluntary nature of the product allows the insurance premium to be paid for in a variety of ways, unlike health insurance, which requires employers to pay a minimum of the premium. Typically premiums are 100% employee funded, however, employers have the option to fully fund the premiums. Additionally, there can be a cost-sharing arrangement between the employer and the employee.
Are there any pre-existing conditions?
The pre-existing condition clause is waived for groups with two or more enrolled employees. One-person groups who elect to apply for long-term disability insurance will have a pre-existing condition clause incorporated into their policy.
Can I continue my benefits if I leave my job?
Long-term disability insurance is not portable. When employment is terminated, the disability benefits will cease.
If I do not enroll when my office initially implements the Long-Term Disability Insurance, can I enroll at any time later on?
Employees are strongly encouraged to enroll at the implementation of the long-term disability policy. Enrollment at the onset ensures guaranteed acceptance with no medical questionnaires. If an employee elects to enroll at a later date, they will be subject to an extensive medical questionnaire and in some cases, a physical exam.
Can I cancel my Long-Term Disability Insurance at any time?
The long-term disability insurance offered by MDSIS-Spring is a voluntary product and enrolled employees are able to terminate their policy at any time.
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