Disability Insurance
Short-term vs Long-term Disability Insurance
Short-term Disability Insurance provides protection from loss of income due to disability resulting from an accident or illness after a waiting period of 30 consecutive days. Short-term disability pays a monthly payment equal to 66% of your gross monthly salary up to $10,000 of salary or $6,600 in benefits for up to five months.
Long-term Disability (LTD) Insurance provides protection from loss of income during extended absences due to total disability resulting from an accident or illness. A waiting period of 90 consecutive days must be satisfied before disability benefits become payable. Long-term disability payments are equal to 60% of your gross monthly salary up to $10,000 of salary, or $6,000 per month in benefits. LTD benefits for the first 24 months are based on disability from a specific job. After 24 months, it is based on disability from any job and approval by Social Security for disability benefits.
Short-term and Long-term Disability Insurance Combined
If an employee is covered by both short-term and long-term disability at the time they become disabled, benefits are payable at 70%. To receive a monthly benefit from either the short-term or long-term disability plan, you must meet the definition of total disability. Benefits will be reduced by the income you receive from other sources, such as Social Security benefits, workers鈥� compensation, or your disability retirement plan benefits. No benefits are payable until all accumulated paid sick leave through the university is exhausted.
Pre-existing condition exclusion applies to both short-term and long-term disability programs.