Disability Insurance FAQ's
What type of protection is offered under Long-Term
Disability Insurance?
This program protects active employees against loss of
income arising out of a total or partial disability.
How is "totally disabled" defined?
You are considered totally disabled if, due to sickness
or accidental bodily injury, you are unable to perform
the material and substantial duties of your occupation.
After 24 months of benefits, you are considered totally
disabled if you are unable to perform the material and
substantial duties of any occupation for which you are
reasonably fitted by education, training, or experience.
How is "partially disabled" defined?
You are considered partially disabled if, due to sickness
or accidental bodily injury, you are unable to perform
the material and substantial duties of your occupation
on a full-time basis, but can work at your own occupation
on a part-time basis or at another occupation on either
a full- or part-time basis.
Is there a time limit for filing a disability
claim?
Yes. You have 30 days from the first day of disability
in which to file your claim. If your claim is received
more than 30 days from the start of the disability, you
must show good cause why the claim was not filed timely. You
can attach a statement to the claim form (DS-1) explaining
why your claim is late. If good cause is not shown,
benefits may be reduced or denied.
Is long-term disability insurance considered taxable?
Generally, you must report as income any amount you receive
for your disability through an accident or health insurance
plan paid for by your employer.
If both you and your employer have paid the premiums for
the plan, only the amount you receive for your disability
that is due to your employer's payments is reported as
income. If you pay the entire cost of a health or accident
insurance plan, do not include any amounts you receive
for your disability as income on your tax return. If you
pay the premiums of a health or accident insurance plan
through a cafeteria plan, and the amount of the premium
was not included as taxable income to you; the premiums
are considered paid by your employer, and the disability
benefits are fully taxable. |
