Free Sample Long Term Disability Plan Policy
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Sample Long Term Disability Plan Policy


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Long Term Disability Plan (LTD)

Policy Rationale

This plan provides income replacement for long-term disability claims.

Description

If a disability continues beyond  consecutive months, an employee may be eligible for benefits. The benefit paid is  of the employee’s gross pre-disability monthly salary on the date of disability.  If disability payments are subject to deductions, list those here.

Enrollment

Participation in the plan is a condition of employment once an employee is deemed eligible for enrollment.  Permanent employees are enrolled upon date of hire.  Temporary employees must be employed for at least  by Employer ABC in order to be enrolled.

General Provisions after Approval

Retirement Plan Benefits

Employee’s who receive payments from the LTD Plan also receive a “Waiver of Premiums” for the Retirement Plan.  The employee’s retirement contributions will continue during the period of disability at no cost to the employee.  Under the Waiver of Premiums provisions, ABC will make the contributions to the Retirement Plan on the employee’s behalf.

Group Life Insurance

Employee’s who receive payments from the LTD Plan also receive a “Waiver of Premiums” for the Group Life Insurance Plan.  The employee’s pre-disability group life coverage will continue during the period of disability at no cost to the employee.  Under the Waiver of Premiums provisions, ABC will make the contributions to the Group Life Insurance Plan on the employee’s behalf.  This applies to any supplemental and dependent coverage the employee may have.

Health Insurance

Employees may continue their Group Health Insurance by paying the employee share of the Plan’s cost during the period of disability.

Disclaimer

While every attempt has been made to ensure the accuracy of the above summary, the actual Plan text will prevail in the event of any discrepancy as this policy does not constitute a legal document.


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