Long-Term Disability (LTD)
Provides income replacement in the event you are disabled and unable to work. If you are covered under a workplace statutory disability insurance (DBL), you could receive up to $170 a week for a maximum of 26 weeks. Higher limits may be available if your employer elects to purchase them.
If your disability extends past the 26 weeks, you will have to rely on Social Security benefits, if qualified. LTD insurance is designed to begin when statutory disability insurance (DBL) benefits end. LTD pays you a percentage of your salary, typically 50-70%. If the premiums are paid with after-tax dollars, the benefit is paid tax-free. However, if you pay pre-tax, the benefits are taxable. It is recommended that you pay for LTD premiums using after-tax dollars.