A long-term disability (LTD) plan is designed to work with other sources of disability income to replace a percentage of an employee’s income if they become disabled as defined by the plan. Other sources of disability income, including benefits an employee is eligible to receive from Social Security Disability Insurance Benefits and Social Security Old Age Insurance Benefits, typically count toward that percentage. LTD plan benefits generally begin after an elimination period, and end at the earliest of:
When the employee is no longer disabled as defined by the plan
The employee leaves your employment for any reason other than a covered disability
When an employee reaches the limit for receiving LTD benefits, which for many plans is an age limit, or
