Long Term Disability (LTD) insurance is a wage insurance policy to help provide financial replacement should you become medically unable to work due to health reasons. WSU automatically provides a basic policy on all benefit-eligible employees. After a 90-calendar day waiting period, this basic policy would pay a minimum $50 a month benefit, up to a maximum $240 a month benefit. This portion of the benefit is taxable.
The optional policy that employees can elect to enroll in ensures that up to 60% of eligible wages are covered for approved claims. The majority of this portion is non-taxable. This policy insures the first $120,000 worth of annual salary; in other words, for employees who make more than this amount annually, only the first $120,000 will be covered.
When deciding whether or not you may need optional LTD insurance, ask yourself the following questions:
- How long could you get by without your salary if you were unable to work due to health reasons?
- Do you have other sources to rely upon, and if so, for how long? Do you have savings you could tap into, or are you a two-income family who could get by on one salary for a period of time?
- What is in your family medical history? Are there chronic or terminal medical conditions in your family history that may arise in your future as well?
- Do you have an existing condition that could cause a future period of disability?
- Have you previously applied and been denied for LTD insurance?
Visit the LTD Open Enrollment Post for additional information, including details on how to enroll or make changes during the Open Enrollment period.
Questions can be directed to HRS Benefit Services at (509) 335-4521 or hrs@wsu.edu. Follow WSU HRS on Facebook or Twitter for updates.
