Benefit Details for Long-Term Disability Insurance

Loss of income due to disability can severely impact an employee and dramatically affect those who are financially dependent upon the employee.

Cancer is one of the leading causes of new and ongoing disability claims. Excess body weight, chronic health conditions and tobacco use are just a few of the many factors that may increase your risk of disability.

Long-term disability (LTD) insurance is meant to help replace a portion of one's pre-disability earnings when that income is lost because of inability to work for longer than 90 days due to disease or injury.

Because long-term disability insurance helps to protect the stream of income, it is among the most valuable components of a comprehensive financial safety net.

Benefit Provisions

  • Income Replacement: Sixty Percent (60%) of pre-disability salary of the insured employee (salary plus housing allowance in the case of ordained clergy).
  • Rehabilitation and Return to Work Assistance Benefit and
  • Dependent Care Expense Benefit

Approved LTD Claims Pay Benefits Under a Common Two-Part Definition of Disability

  • The initial two years that LTD benefits can be paid are to a disabled employee who is limited from performing the material and substantial duties of their regular occupation due to their sickness or injury, and then
  • After the initial two years of payments, benefits can be paid according to the maximum period of payment table, when due to the same sickness or injury, the employee is unable to perform the duties of any gainful occupation for which they are reasonably fitted by education, training or experience.

Maximum Period of Payment

  • For participants whose age at disability is less than 60,┬áthe maximum period of payment is to age 65, but not fewer than 5 years.
  • If age at disability is 60, the maximum period of payment is 60 months.
  • If age at disability is 61 or beyond, the maximum period of payment gradually declines, and is 48 months or fewer, but not fewer than 12 months, as per the payment table in the coverage booklet.
  • For all disabilities due to mental illness the plan allows up to 24 months lifetime cumulative maximum benefit period.
  • The insurance company will not apply the mental illness limitation to dementia if it is a result of stroke, trauma, viral infection, Alzheimer's disease or other conditions not listed which are not usually treated by a mental health provider or other qualified provider using psychotherapy, psychotropic drugs, or other similar methods of treatment.

An employee is disabled when the insurance company determines that:

  • They are limited from performing the material and substantial duties of their regular occupation due to their sickness or injury; and
  • (after the elimination period) they have a 20% or more loss in their indexed monthly earnings due to the same sickness or injury.

Most employer/congregations self-fund the first 90 days of their employees' disability.

The UUA's Office of Church Staff Finances does not offer Short-Term Disability insurance.