If your annual salary is greater than $20,000, you may purchase Optional Long Term Disability to provide additional salary coverage beyond $20,000 per year. You pay the total cost of the optional coverage, which will be deducted from your paycheck.
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). Both the Basic and Optional Long Term Disability policies are designed to coordinate with other forms of disability payments, such as Social Security and Workers’ Compensation, to provide you with a total monthly payment equal to 60% of your base salary before you became disable.
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.
Disability benefits from basic and optional coverage will cease on the earliest of the date you are no longer disabled, the date you die, and the end of the maximum benefit period. In some cases, benefits may continue beyond age 65, depending on the employee’s age at the time of disability.