Common use of Short-Term and Long-Term Disability Insurance Clause in Contracts

Short-Term and Long-Term Disability Insurance. The employer shall provide Short Term (STD) and Long Term Disability (LTD) insurance coverage to its employees. The STD has a fifteen (15) day elimination period, provides 67% of pay up to $750/week, and provides 26 weeks coverage; and the LTD coverage has an 180 days elimination period (after 26 weeks of STD), provides 60% of pay up to $1,000/per month, and provides coverage for most qualified instances up to Social Security / NRA or for 2 years for three certain disorders/issues: if you could no longer do your job but could do a different job; mental and nervous disorders; and self reported limitations. Employees can opt for a “buy up” of 60% of their salary up to $6,000 per month of LTD coverage on a voluntary basis to be administered by a payroll deduction on the employees’ behalf. Employees can opt to use sick leave to bring their compensation up to full gross pay for twelve months when on Disability. All of these provisions will be in accordance with the insurance policy.