If you’re out of work for more than six months because of an illness or injury, Long-term Disability can kick in where Short-Term Disability leaves off, protecting your income and your family.
Your cost for Long-Term Disability benefits depends on how much coverage you choose. You pay 100% of the premium costs using after-tax dollars; that way, any benefits you receive when you become disabled will be tax-free. ConocoPhillips offers two levels of Long-Term Disability coverage.
|Coverage||Benefit paid||Monthly Rate (per $100 of monthly pay)|
|Basic||50% of your pre-disability earnings||$0.365|
|Enhanced||60% of your pre-disability earnings||$0.451|
You may be required to provide evidence of insurability, or “good health,” when you sign up if it is outside your initial 30-day enrollment period.
To qualify for benefits, you must be unable to perform your job, and any earnings you’ve lost must be a direct result of sickness or accidental injury. Your benefits will be based on your pre-disability earnings and level of coverage (Basic or Enhanced).
The Long-Term Disability coverage also takes into consideration other disability income you may receive and is designed to reduce your benefit if the monthly income from all sources exceeds 50% or 60% of your pre-disability income based on your coverage level. If you commence your retirement pension benefit, then your LTD payment will be offset.