Long Term Disability (“LTD”)

Many of our business clients, and others, have either been acquiring or seeking information about Group & Non-Group/Private – Long Term Disability (LTD) coverage. What follows is a general overview of the important differences between these two types of coverage. If you would like a quote on Group LTD please fill out our CENSUS and then fax that back to us or call or email us at: Contact Us.


  • The incidence of Disability is much higher than death creating the risk of financial hardship.
  • Social Security is extremely difficult to qualify for, it only pays after one year, and it does not provide adequate income replacement.
  • State Disability pays only a maximum benefit of under approx. $400 per week (based on your highest quarterly earnings in the most recent prior 12 month “base” period), but for only 52 weeks, after a 7 day waiting period.
  • The largest contributor to Home Mortgage foreclosure is loss of income due to disability.


  • LTD replaces 60-70% of a disabled Employee’s earnings.
  • LTD can be designed to pay benefits up to age 65-LTD can provide built in Partial Disability benefits.
  • LTD carriers often offer rehabilitation benefits and programs.
  • LTD saves Employees money when compared to the cost of Private Disability coverage’s.
  • LTD is guaranteed issue (issued usually without the requirement of medical underwriting pre-approval, although it will not cover disabilities resulting from a pre-existing condition until after a “treatment free” waiting period). Guarantee Issued typically to 10+ Employee Groups.


  • LTD premiums are Tax Deductible by the Employer.
  • LTD absolves the Employer of difficult moral decisions arising when Employees are disabled.
  • LTD can relieve an Employer of expensive and possibly illegal salary continuance practices.
  • LTD is inexpensive – usually under 1-3% of payroll. For an average 25 Employee group, the total cost can be less that $300.00 per month!

We advise that it is better for you to shift the burden of this insurance gap to an Insurance company, and immediately investigate & acquire this line of coverage. We have access to all major markets for LTD, and can design programs that are appropriate for your situation. You will be surprised by the low cost and high benefits of LTD. In this age of tightening Social Security, and aging demographics, no one should be without this much needed disability protection.

See the chart below for a more in depth comparison of Group LTD to Private/ Non-Group Disability Insurance. Both coverage’s are extremely valuable and important to have. In order of preference, and so that you can have the greatest protection, it is best to first purchase a private plan of coverage and then to layer on top of that additional Group LTD. Group plans typically do NOT offset benefits, nor do they limit purchases of the maximum available LTD benefits due to your having a private plan.


[Long Term Disability – Total Disability]
[Disability – Total + Income Loss]
1. Can the Insurance Company Ever Cancel the Plan For Other Than Non Payment Of Premiums? YES NO
2. Are The Rates Guaranteed? NO
[If so, usually only for 1-3 years]
[To Age 65]
3. Does the Coverage Provide a True “Own Occupation” Definition of Total Disability? YES & NO [If you go to work in another occupation, your monthly benefit will be reduced by income earned in new job]. YES [No offsets; therefore, income will come from both Insurance policy & new job if the “Own Occ.” rider is selected].
4. Are Benefits Reduced or Offset if the Insured Collects Worker’s Compensation or Social Security Disability Benefits? YES NO [and, with a rider, will pay added benefits if one fails to qualify for Social Security disability benefits during a claim under the base policy].
5. Are Limits Placed on Mental and Nervous Claims? YES [Requires insured to be confined to a hospital, usually after 24 months of benefits, for any further benefits]. SAME
6. Is the Coverage Portable Upon Termination of Employment? Most are Not [Those that are reduce the benefit maximum & premiums can increase; those that are offer an expensive “conversion plan”]. N/A – It’s private already, and “owned” by the insured.


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