Disability

Disability insurance provides cash support should you experience a qualifying disability and become unable to work. Short-term disability (STD) coverage provides benefits for up to 12 weeks. This coverage is provided at no cost to you. You can choose to purchase Long-Term Disability coverage, which pays a benefit if you are considered disabled beyond the STD period.

A qualifying disability is a sickness or injury that causes you to be unable to perform any other work for which you are or could be qualified by education, training, or experience.

How Disability Insurance Works

Learn more about how disability insurance works, what’s covered, and how to file a claim.

Short-Term Disability

Neighborly sponsors a self-insured Short-Term Disability (STD) plan, and you pay nothing out of pocket for this coverage. The STD plan replaces 60% of your weekly earnings for up to 12 weeks if you become disabled due to an off-the-job injury or illness. The maximum weekly benefit is $1,250.

• If you’re injured: Plan benefits begin immediately after your accident
• If you’re ill: Plan benefits begin after day 7 of your illness. You can use Paid Time Off (PTO) to replace your pay during this time.
• If you’re delivering a baby: Maternity disability is paid at 100% of your eligible pay. Proper medical documentation is required for any pre-partum disability pay.

If you work in a state with state-mandated disability or paid family and medical leave benefits, you must apply for your state’s benefits before you apply for STD. Your STD benefit through Neighborly will be reduced by any state or other governmental benefits that apply.

Long-Term Disability

This coverage is optional, and if you choose to enroll, you’ll pay for it using after-tax dollars. As a result, any benefits you receive will not be considered taxable income.

LTD replaces 60% of your earnings, up to an $8,000 monthly maximum, for the remainder of the time you’re considered disabled, up to 24 months after STD benefits end. Note, the benefit payment period may be extended with approval from MetLife.

The monthly cost for LTD coverage is $0.46 per $100 of monthly covered pay. The biweekly cost for LTD coverage is $0.2123 (rounded) per $100 of biweekly covered pay.

How STD and LTD Work Together

Here’s how you would be paid if you were considered disabled by illness and filed claims for STD and LTD.

• Days 1-7: Any available PTO replaces 100% of your pay
• Next 12 weeks: STD replaces 60% of your earnings, up to $1,250 per week. (Maternity STD is paid at 100%)
• After 12 weeks: LTD replaces 60% of your earnings, up to $8,000 per month and may continue for up to 24 months (or longer with MetLife approval).