When your organization provides Long-Term Disability Insurance as a benefit of employment:
- Clergy are covered for 50% of their compensation to a maximum of $5,000 per month.
- Lay employees are covered for 66-2/3% of their compensation to a maximum of $5,000 per month.
Benefits are reduced by any amount received from:
- Workers' Compensation or similar provisions in the law
- State disability benefits
- Social Security benefits (lay employees)
- A third party by judgment, settlement or otherwise (after subtracting attorney's fees)
- Pension benefits for lay employees. (Clergy pension benefits are not reduced from their disability benefit)
The monthly premium, based on salary, is $.67 per $100 of monthly payroll.
Because you, the employer, pay the premium, the benefit is 100% taxable to employees.
After being insured for at least 12 months, employees who leave their jobs may continue coverage by converting the policy to First UNUM Life Insurance Company and paying First UNUM at a rate they determine at the time of conversion. However, First UNUM must receive a conversion application within 30 days of your termination date.
| Long-Term Disability Forms | View |
|---|---|
| Application for Conversion of Long-Term Disability Insurance |  |
Life Insurance and Other Insurance Disclaimer
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