Optional Long Term Disability
The Basic Long Term Disability plan pays a benefit of 60% of salary, up to a maximum benefit of $1,000 a month. If your annual salary is more than $20,000, you may elect to purchase Optional Long Term Disability to provide additional coverage for your salary in excess of $20,000 per year.
This coverage is designed to provide total disability income up to a maximum benefit of $5,000 per month (based on an annual salary of $100,000). As with the Basic Long Term Disability plan, your benefits are designed to coordinate with other forms of disability payments, such as Social Security and Worker’s Compensation, so that you will receive a total income of 60% of your base salary.
If you choose the optional coverage, you pay the additional premium. Disability benefits paid from the basic insurance are taxable, but benefits paid from the optional insurance are not taxable.
Last revision 11/1995