Long Term Disability (LTD) insurance provides a foundational layer of basic income protection. It is a group product, distinguished from it's individual counterpart, Disability Income (DI), by greater accessibility and lower costs (one-fifth as much or better).
For the business, the purpose of Long Term Disability insurance is to gracefully offload underperforming employees from the payroll without firing them, thus sidestepping thorny questions about wrongful termination in their hour of need. Without it, the business may face runaway payroll or legal expenses.
Information Needed For Proposals
To get started, complete the intake form to request proposals.
Pricing depends on demographics. Specifically:
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Class, if carve-out eligibility or tiered benefits are to be considered (optional)
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Ownership % of the business
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Date of Birth
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Gender
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State of Residence
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Work Zip Code
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Date of Hire
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Occupation
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Hours worked per week
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Hourly wage
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Base salary projected for this year (gross pay)
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Bonus paid in the prior year
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Commissions paid in the prior year
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RSU's paid in the prior year
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Ownership Distributions paid in the prior year
The type of pay is extremely important.
Compensation must be broken out by type (e.g., base, bonus, etc).
Demographics can be compiled using this starter spreadsheet which gives you a head start on the field names.
Long Term Disability Insurance Companies
Group Long Term Disability insurance companies include MetLife, Principal, Standard, Hartford, Guardian, Mutual of Omaha, Prudential, Lincoln Financial, and Unum.
For individual coverage, refer to Individual Disability Income Insurance Companies.
Short Term Disability, life, accident, critical illness, and dental are generally quoted along with LTD and then you can select lines a-la-carte.