Long-term disability premium calculator: what would LTD cost per employee?
Enter covered payroll, the rate per $100 and the benefit terms to estimate the premium and a typical benefit. Built for HR and finance teams pricing a group LTD plan.
Estimate a group long-term disability premium.
Use the rate from your quote. The result updates as you type.
Take this from your quote. The default is an assumption.
Your estimate
An estimate from the rate you enter. Your carrier quote sets the real premium and the benefit terms.
What does long-term disability cover?
Long-term disability pays part of income when an illness or injury keeps an employee from working for an extended time. Benefits begin after an elimination period and usually replace a percentage of earnings, up to a monthly maximum. They can last for a set number of years or to a stated age, depending on the plan. It pairs with short-term disability, which covers the earlier weeks.
How is the premium priced?
Most carriers quote a rate per $100 of covered monthly payroll. The rate depends on the benefit percentage, the elimination period, the benefit duration, the industry and the group. Employers often pay the full premium for a base plan and offer a voluntary buy-up. Comparing quotes on the same terms matters.
Common questions
Is the benefit taxable?
It depends on who paid the premium. Benefits are generally taxable when the employer pays the premium or the employee pays with pretax dollars, and generally not when the employee pays with after-tax dollars. Check with your tax advisor.
What is the difference from short-term disability?
Short-term disability covers the first weeks or months of an absence. Long-term disability starts later and lasts longer.
Does the plan pay the full salary?
No. Most plans replace a percentage of earnings, up to a maximum, and may offset benefits from other sources such as Social Security.
Should the employer or employee pay?
Both designs are common. We can model the cost and the tax effect with you.
Talk to us about disability coverage
Book a 30-minute call and we will look at your workforce, your current coverage and the options that fit. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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