Premiums for Long-Term Disability Insurance

The annual premium for this long-term disability (LTD) coverage is 1.3% of the amount insured; divide that amount by 12 to obtain the monthly premium.

To calculate the per-paycheck cost for this coverage, complete the calculation below:

  • Annual Salary (for ordained clergy, use Salary + Housing) divided by 100 = ____________ x $1.30 = Annual Cost.
  • Divide Annual Cost by # paychecks/year = Cost per Paycheck (final cost may vary slightly due to rounding).
  • To determine the monthly cost, divide the annual cost by 12.

Example 1: The annual LTD premium for a minister with a combined salary and housing allowance of $57,000 will be $741. Divide the annual cost by 12 to obtain the monthly premium—in this example, $61.75/month.

Example 2: The premium for a staff member with earnings of $28,000 will be $364 per year, divided by 12 equals $30.33 per month.