Long-Term Disability (LTD) Options. The LTD Plan provides a level of income replacement protection should you continue to be disabled beyond the period of time covered under the Disability Leave Policy. If approved by The Hartford, the plan provides you with a monthly benefit based upon a percentage of your benefits pay, less certain other disability benefits. Benefits pay is limited to $700,000.
You can choose long-term disability protection from among the following options:
Replacement of 50% of benefits pay, to a maximum monthly benefit of $29,167;
Replacement of 60% of benefits pay, to a maximum monthly benefit of $35,000;
Replacement of 60% of benefits pay plus two-year average bonus paid or deferred, to a maximum monthly benefit of $35,000, if eligible. (See "Important Terms" for the definition of "Benefits Pay" and how "Bonus" is defined under this option. If you are an employee paid on a draw-and-commission basis, you are not eligible for this option.); or
No Coverage.
Your benefit is subject to offset by other disability-related income benefits. See "Important Terms" for the definition of "Benefits Offset."
The maximum monthly benefit represents the maximum you would receive per month if you earn, either as a base or base plus bonus, $700,000 or more.
Benefits Eligibility
Generally, benefits can begin after the greater of 182 days of disability or the end of benefits under the Disability Leave Policy.
During the elimination period of 182 days and the next 24 months: It must be determined by The Hartford Life and Accident Insurance Company (The Hartford), the insurance carrier and claims administrator for the LTD Plan, that you cannot perform one or more of the essential duties of your regular occupation because of an occupational or non-occupational injury or sickness.
After 30 months of disability (the 182-day elimination period plus 24 months of LTD Plan benefits): You're eligible for continued LTD Plan benefits if The Hartford determines that — because of an occupational or non-occupational illness or injury — you're unable to perform one or more of the essential duties of any other occupation for which you're reasonably fitted by training, education, and experience.
If your benefits pay is more than or equal to $200,000, you may qualify for benefits under the LTD Plan (under the coverage option you choose) if you're unable to perform one or more of the essential duties of your own occupation for the maximum payable duration of the disability. (Your premium will be higher in this case.) If you elect coverage under this option and your benefits pay drops to less than $200,000 but is greater than or equal to $160,000, you will be allowed to continue in this option.
Your long-term disability benefits may continue until you are determined not to be disabled, reach the maximum time period for benefits, or die.
Duration of Benefits
Generally, if you continue to meet the definition of disability, benefits paid for a disability occurring before age 60 continue until you recover or you reach age 65, whichever occurs first. Benefits paid for a disability occurring after age 60 continue for a specified length of time, based on the age at which you become disabled. Please see "When Benefits Begin and End."
How You Pay for Coverage
You pay for LTD coverage on a before-tax basis, and as a result you may generally be required to pay applicable income taxes on any benefits you may eventually receive. Your cost per pay period depends on your benefits pay, the level of coverage you choose, and your status as a non-smoker or smoker. Please see "Important Terms" for the definition of "Benefits Pay."
