Long Term Disability Insurance
Disability insurance serves as a partial replacement of your income if you’re unable to work due to a sudden illness or accident. It can help pay for everyday expenses, such as:
- Groceries
- Utilities
- Mortgage
- Car Payments
Plan Summaries
Highlights
Conversion
Conversion allows you to convert your Long Term Disability insurance to an individual insurance policy without going through Evidence of Insurability
Own Occupation
Own Occupation means a person is typically considered disabled if they are unable to perform the material and substantial duties of the job they were working at the time they became disabled.
Survivor Benefits
If you pass away while receiving disability benefits and have been continuously disabled for at least 180 days, Reliance will pay a survivor benefit to your eligible survivor. This benefit is a lump sum equal to three times your monthly disability benefit, without reduction by deductible income.
Why Buy Disability Insurance?
Example – For Illustrative Purposes Only
Long Term Disability Example
Annual Earnings
$50,000
Monthly Gross salary ($50,000/12)
$4,166.67
Monthly Benefit ($4,166.67 x 60% Benefit)
$2,500
Long Term Disability Example:
Steve is eligible for Long Term Disability benefits. In order to figure out how much his benefit would be he would take his annual salary of $50,000 and divide it by 12 months to give him his monthly salary of $4,166.67. His plan pays 60% of his monthly earnings. He would then multiply his monthly salary by .60 to get his monthly benefit of $2,500.
Value Added Benefits
Travel Assistance
Identity Theft Protection
Employee Assistance Program (EAP)
File a Claim
How to file a claim
Frequently Asked Questions
Do I really need it?
Most people hear the word “disability” and assume this form of insurance only applies to very serious injuries and illnesses — yet many common injuries (like fractures) or chronic conditions (like back, hip, or knee problems) can result in your not being able to do your job and earn a paycheck.
According to the U.S. Social Security Administration, more than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of some disabling condition before they reach age 67 (the normal retirement age). Will you have an ability to pay your bills if you need to miss work for several months? If you don’t have access to that much in emergency savings, or friends or family that can help pay your bills when you need to take time off work, disability insurance makes a lot of sense.
What’s the difference between Short Term and Long Term Disability?
Short-term disability (STD) insurance plans generally protect your income for up to three or more commonly six months. Some plans can run even longer than that. Short-term plans typically cover between 60 and 70 percent of your pay, depending on the policy.
Long-term disability (LTD) insurance protects your income if you need to miss work for longer than three to six months. It usually covers 40 to 70 percent of your income. It costs more than short-term disability insurance because it’s a policy that will protect you for a significantly longer time. The time your coverage pays benefits will range depending on your policy. It can be for a specific period — ranging from two to five or ten years — or until your Social Security retirement age. The waiting period for most LTD policies is three or six months — so you’ll need a plan to cover costs before the payments begin (usually this time is covered by your STD plan or your savings.)
How much does Long Term Disability pay?
Long-term disability benefits pay a pre-determined percentage of your pre-disability earnings reduced by deductible income. Deductible income includes other sources of income that you may be earning while disabled such as Social Security disability benefits, workers’ compensation benefits, or work earnings. Please refer to your policy for more information.
When does Long Term Disability benefits begin?
Long-term disability benefits become payable after you have met your elimination period that begins on the date of disability. Please refer to your policy for more information.