Long-Term disability (LTD) insurance is an extremely valuable plan the university provides to eligible faculty and staff. Long-term disabilities may occur because of underlying or undiagnosed medical conditions as well as from catastrophic or workplace injuries. LTD coverage protects you and your family financially by providing a source of income when you become totally disabled and can no longer work. In addition, the university pays the cost to continue most of the U-M health benefits that you have at the time of disability, including medical and prescription drug coverage for you and your eligible dependents enrolled at the time of your disability.
Consider these important questions:
- Do you already have long-term disability insurance coverage that protects both your salary and your health benefits?
- How would you pay for groceries and utilities; make your rent, mortgage, or car payment; or pay other bills if you could no longer work at all?
- Do you have other life insurance coverage?
- Do you have other retirement income options for you and your spouse or OQA?
- How would your inability to work and draw a salary impact those who rely on you for financial and emotional support?
The university offers long-term disability plans designed to provide you with income replacement and benefits continuation after your extended sick time pay is exhausted. Refer to the University of Michigan Standard Practice Guide for details on sick time pay. See SPG 201.11-0 for staff and SPG 201.11-1 for faculty.
To qualify for benefits under a long-term disability plan, you must be totally and permanently disabled. This means that you are unable to do any work for which you are reasonably suited by education, training, or experience, and your disability will last (or be expected to last) for at least 12 continuous months from your last day of work.
If you are a practicing physician, the Expanded Long-Term Disability Plan provides partial disability coverage under a special provision. For those practicing physicians who are House Officers, you have coverage under the House Officer's LTD Plan, which is a separate plan administered by an outside vendor.