PWI Blog

We’re here to help you better understand all aspects of group insurance. We’ll give you up-to-date information, quick facts and trends that will keep you informed and knowledgeable.

What is Long Term Disability?

Q:  What is Long Term Disability?

A:  It is an ‘income-replacement’ benefit!

It works this way:

  1. The LTD benefit is equal to two-thirds of the employee’s monthly earnings.
  2. Assume an employee becomes ‘totally disabled’ from an accident or a sickness.
  3. The insurance company pays the LTD benefit amount to the employee for as long as he/she remains totally disabled, up to age 65.
  4. The LTD benefit amount increases each year, based on inflation.