Long Term Disability Insurance
Protect yourself from the unexpected
You can’t plan for everything, but you can be prepared. RPB’s low-priced and comprehensive long term disability (LTD) insurance will help you cover essential costs in case of serious illnesses, injuries, or accidents that leave you unable to work.
You’re eligible for coverage if you work at a URJ-affiliated congregation, or a Reform Movement employer, at least 18 hours a week. You don’t need to participate in our retirement plan to enroll in LTD; just tell your employer you’re interested in enrolling.
“If it had not been for RPB's disability insurance, we might have lost everything. Everyone should be in the disability plan. And because I paid the premium with post tax dollars, my disability benefits were not taxed and that made the benefit close to 90% of my net salary after taxes.”
—Rabbi Jeffrey Kurtz-Lendner
How LTD insurance works
Sign up and choose your coverage
New hires can sign up for LTD insurance within 60 days of their hire date. Otherwise, eligible employees can sign up during the open enrollment periods in June and December of each year. You can choose from a 90-day or 180-day waiting period before benefits begin.
Pay the premiums
RPB only accepts payment from your employer. If your employer doesn’t offer LTD insurance as a paid employee benefit, you can still get coverage. In this case, you pay the premium to your employer by personal check or through a post-tax payroll deduction, and then your employer will submit payment to RPB. Your employer will also renew coverage on your behalf.
Understand your benefits
In the event of a disabling injury or illness, you’ll receive 60% of your monthly earnings (up to a maximum of $17,000 per month) after your benefit waiting period. For U.S. participants, benefits are paid until your Social Security retirement age (based on the year you’re born) or when you no longer qualify for the benefits, whichever comes first. For Canadian participants, benefits are paid until the age of 65 or retirement, whichever comes first. Please note that other sources of income may reduce your disability benefit.
Rates and premium payments
Your premium is based on the waiting period you choose and your compensation (for clergy, salary plus parsonage). The waiting period is the time between the onset of a disability and the commencement of benefits.
When you enroll in LTD you'll need to let your employer know your waiting period and how you want to pay your policy premiums.
LTD Insurance Annual Rates
|Waiting Period||Rates effective 12/1/21|
$6.26/$1,000 of coverage
$5.52/$1,000 of coverage
For example, the rate for the 90-day waiting period is $6.26/$1,000 of salary (including parsonage, if applicable). This means that the annual premium for an employee earning $50,000 with a 90-day waiting period would be $313.
Similarly, the rate for the 180-day waiting period is $5.52/$1,000 of salary (including parsonage, if applicable), so the annual premium for an employee earning $50,000 with a 180-day waiting period would be $276.
Semi-annual rates for six months of coverage are half of the annual rate. Refer to our U.S. and Canada LTD policies for additional details.
Pay with post-tax dollars for tax-free benefits
Disability payments are tax-free when the premium is paid with post-tax dollars. If premiums are paid with pre-tax dollars, disability benefits will be taxed as ordinary income, which is why we recommend using post-tax dollars to pay your premiums.
IMPORTANT: To ensure that your premiums are paid with post-tax dollars, make sure you do one of the following:
I want LTD but it is not a paid benefit by my employer
Your employer can deduct your LTD premium from your paycheck on a post-tax basis or you can write a personal check to your employer for the premium amount.
I want LTD and it is a paid benefit by my employer
Your employer can increase your gross salary by the same dollar amount as the premium and then deduct the premium from your paycheck on a post-tax basis. As a paid benefit, if your employer pays your LTD premium without deducting the money from your paycheck, then they are paying the premium with pre-tax dollars.
Additional policy features
Make sure you understand the important benefits and implications of enrolling in long term disability insurance.
When you’re receiving LTD benefits because you’re unable to work, RPB’s free contribution insurance will also continue your employer retirement contributions, up to 15% of your compensation. The contribution insurance coverage only applies if your combined employer and employee contributions are at least 10% of your compensation.
Your contribution payments will stop after you reach retirement age (see policy for definition) or you are no longer considered disabled.
While you’re disabled, your benefits will adjust as needed on an annual basis to keep pace with inflation.
Participation in a rehabilitation program—a program pre-approved by the Plan for the purpose of helping you return to work—enables qualified candidates to go back to work without losing their disability benefits.
If you participate in an approved rehabilitation program, your monthly benefit is increased by an amount equal to 10% of the monthly benefit excluding other income.
In the event you die while receiving disability payments, your monthly payment will continue for 12 months after your death.
MetLife will be happy to provide assistance in coordinating your LTD insurance benefits with Social Security disability benefits.
Coverage when changing jobs
If you switch jobs to another eligible employer, you can still get LTD insurance coverage. You'll simply need to re-enroll with your new employer. Your new employer will be responsible for paying the premiums.
In the event you leave your job in the middle of the year, the unused portion of the premium can be refunded. Contact your former employer to request a refund within 60 days of leaving your job.
Don’t let your retirement planning derail in the event of an accident.
RPB’s retirement contribution insurance ensures your retirement savings continue even if you can’t work.