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Long-term
disability insurance provides covered employees with income in the event of
either a work or non-work related disability.
Elimination periods and benefit durations vary by plan design.
Cost
Monthly premium rates for long-term disability insurance are
quoted as a percentage of payroll. For example, 10
covered employees each making $4,000 per month would result in
a covered monthly payroll of $40,000. A rate of 0.28%
would yield a monthly premium of $112 ($40,000 times 0.0028).
Employer Premium Contribution
Most employers pay 100% of premiums for group long-term
disability plans. Voluntary (employee paid) disability
insurance is available for groups with five or more employees.
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