Long Term Disability
LTD
Application - Montana University System
Long
Term Disability (LTD) coverage can help protect your income
in the event you become disabled and unable to work. Choices
includes three LTD options designed to supplement other sources
of disability income that may be available to you:
- 60% of pay, following 6 months of disability
- 66-2/3% of pay, following 6 months of disability
- 66-2/3% of pay, following 4 months of disability.
LTD
At-A-Glance
The following chart highlights some of the similarities and differences between your LTD options. For more information about covered services, exclusions and limitations, please refer to your Group Benefits booklet.
| May increase one level of coverage during annual enrollment |
60%
of pay / 180 day wait |
66-2/3%
of pay / 180 day wait |
66-2/3%
of pay / 120 day wait |
| Who May Be Enrolled | Employee Only | Employee Only | Employee Only |
| Amount of Benefit | 60% of pre-disability earnings, to maximum benefit of $9,200 per month. The minimum monthly benefit is the greater of $100 or 10% of your LTD benefit before reduction by deductible income. | 66-2/3% of pre-disability earnings, to maximum benefit of $9,200 per month. The minimum monthly benefit is the greater of $100 or 10% of your LTD benefit before reduction by deductible income. | 66-2/3% of pre-disability earnings, to maximum benefit of $9,200 per month. The minimum monthly benefit is the greater of $100 or 10% of your LTD benefit before reduction by deductible income. |
| When Benefits Become Payable | Following 6 months of continuous disability. | Following 6 months of continuous disability. | Following 4 months of continuous disability. |
If
You Have Other Disability Income
The level of LTD coverage you select ensures that you will continue to receive a percentage of your base pay each month if you become totally disabled.
Some of the money you receive may come from other sources, such as Social Security, Workers' Compensation, or other group disability benefits. Your Choices LTD benefit will be offset by any amounts you receive from these sources. The total combined income will equal the benefit level you selected.
Things to Consider - Long Term Disability (LTD)
As you decide among your LTD options, you may want to consider the following:
- If you were to become disabled, what sources of income would you have? Consider any income that might be available, for example, from your spouse's job, your personal savings, Social Security or other government disability benefit programs and any other group or individual disability coverage you may have.
- Have your financial obligations changed recently? Does this mean you should reconsider the amount of your LTD benefits?
- You may increase one level of coverage during annual enrollment without proof of insurability if you are in an active work status. Of course, you may also choose a lower amount of coverage.
- New employees may elect any option.
- Have there been any changes in your family's financial situation that may affect your need for LTD protection? For example, has your spouse started or ended employment? Do you now have additional dependents for whom you are financially responsible?
Keep in mind, since your costs for LTD coverage are before-tax, any benefits you receive from the plan are subject to applicable federal and state taxes.
Important!This is a brief summary provided to help you understand your coverage. Please review the group insurance certificate containing a detailed description of the insurance coverage including the definitions, exclusions, limitation, reductions, and terminating events. The controlling provisions will be in the group policy issued by Standard Insurance Company. Neither the certificate nor the information presented here modifies the group policy or the insurance coverage in any way. |
