Group Short Term and Long Term Disability

Disability coverage is available on a long or short term basis. A disability program provides income protection to your employees should they be unable to work as a result of an illness or accident. Typically disabilities that result from work related activities are covered by your workers compensation plan rather than a short or long term disability plan. Disability plans are typically paid for by employers or an employer provides a basic benefit of 40% or 50% and employees are given the option of increasing “buying up” their benefit level to 60% or 66 2/3% at their expense. The table below provides a brief summary of typical plan design provisions.

	Short Term Plans	Long Term Plans
Group Size	2 or more Medical underwriting is usually necessary for groups under 10 lives Benefits amounts available will depend on group size and total volume of coverage
Benefits Start After	1, 7, 15, 30 days of disability	60, 90, 180, 365 days of disability
Benefits are paid for	13, 26, 52 weeks	2 or 5 years, or to age 65
Benefit Amounts	Flat amounts such as $100 or $250 per week or as a % of employee pay - 50%, 60%, or 66 2/3%	A percentage of an employees income such as 50%, 60%, 66 2/3%
Rate Guarantees	1 to 2 years	1 to 3 years
Plan Types	Traditional or Voluntary	Traditional or Voluntary
Plan Considerations	Sex and occupational demographics will effect rates	Occupation of covered employees has a significant effect on plan rates

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