Insurance that replaces a portion of income for extended disability periods, often through retirement age.
Long-term disability picks up where short-term ends, typically after a 90-180 day elimination period. Benefits replace 50-66% of income and can continue until normal retirement age depending on policy.
LTD is voluntary at the federal level (no state mandates). PEOs often offer it alongside STD as part of bundled benefits — at small-group rates that are often more attractive than individual-market alternatives.
Insurance that replaces a portion of income for extended disability periods, often through retirement age.
Long-term disability picks up where short-term ends, typically after a 90-180 day elimination period.
Most PEO buying decisions touch several related concepts at once. Long-term disability insurance (LTD) typically comes up alongside the other terms in this category. Closely related terms include Short-term disability insurance (STD), Group health insurance.
This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.
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