Core LTD Provisions
What LTD feature guarantees a minimum number of monthly payments if a claimant suffers certain accidental losses such as loss of a hand, foot, sight, or speech?
Specific Indemnity (Loss of Use) Benefit provides this guarantee.
Which benefit pays a lump sum, often three times the last monthly benefit, to eligible survivors upon the claimant’s death while on LTD?
Survivor Benefit provides this payment.
What pre-existing limitation uses a 3-month look-back and a 12-month exclusion period?
3/12 Pre-Existing Condition Limitation uses this rule.
Which benefit allows claimants to combine work earnings and LTD benefits for up to 12 months, often up to 100% of pre-disability earnings?
Work Incentive Benefit provides this flexibility.
What are the five Activities of Daily Living commonly referenced in LTD plans?
Bathing, Dressing, Eating/Feeding, Transferring, and Toileting.
Which provision pays 85% of the former net LTD benefit for up to five additional years after the standard benefit period ends?
Extended Disability Benefit provides this extended payment.
Which Social Security offset reduces LTD benefits by SSDI payable to the employee, spouse, and dependent children?
Full Family Social Security Offset applies here.
What pre-existing limitation requires a 3-month look-back, a 3-month treatment-free period, and a 12-month exclusion?
3/3/12 Pre-Existing Condition Limitation applies here.
Which benefit credits up to $250 per month in child-care expenses toward the 100% earnings limit during rehabilitation?
Child Care (Family Care) Benefit provides this credit.
Which disability definition is based on inability to perform the material duties of your own job or occupation?
Own Occupation defines this standard.
Which provision allows benefits to resume without a new Elimination Period when the same disability returns within six months and the claimant is receiving an LTD benefit?
Recurrent Disability allows this continuation.
Which Social Security offset reduces LTD benefits only by the employee’s SSDI benefit?
Primary Social Security Offset applies here.
Which limitation restricts benefits for psychological conditions to a lifetime maximum of 24 months?
24-Month Mental & Nervous Limitation enforces this cap.
Which benefit provides vocational services such as job modification, retraining, and placement?
Rehabilitation Benefit offers these services.
Which disability definition is based on inability to perform the duties of any occupation for which you are reasonably qualified?
Any Occupation defines this standard.
What option allows an insured to continue LTD coverage on an individual basis after employment ends?
LTD Conversion provides this option.
What structure includes an employer-paid taxable core LTD with an employee-paid non-taxable buy-up option?
Core and Buy-Up LTD Structure uses this approach.
What is the waiting period before LTD benefits begin and the related period allowing brief returns to work without restarting the wait?
Elimination Period and Interruption Period define these timeframes.
Which benefit reimburses employers for reasonable costs to modify the worksite to support an employee’s return?
Worksite Modification Benefit provides this reimbursement.
What term describes the inability to perform the material duties of your occupation on a full-time basis?
Total Disability describes this condition.
Which rider increases the net LTD benefit while on claim when the CPI-W rises?
Cost of Living Adjustment (COLA) Rider provides this increase.
Who prepares LTD W-2s and handles employer FICA match?
The Carrier or Administrator (e.g., Reliance Matrix) typically performs this task.
Which provision waives the premium for LTD coverage once benefits are payable?
Waiver of Premium applies here.
Which feature pays a portion of the life insurance death benefit while living, often for terminal illness?
Living Benefit (Accelerated Death Benefit) provides this payment.
What term describes the ability to perform some but not all duties of your occupation?
Partial Disability describes this condition.