Short-term disability is voluntary insurance that provides part or all of an employee's monthly income in case of temporary disability. Long-term disability works much like how a short-term disability works. Long-term disability provides employees with a monthly income if they become disabled for more than six months before returning to work. LTD often works in conjunction with short-term disability, helping employees continue to meet financial goals and obligations such as paying their bills. LTD is an insurance policy that provides income replacement for workers and employees unable to work due to long-term illnesses or injuries. Remember that disability insurance will not provide you benefits if you only miss a week of work due to a cold.įor more abbreviations and codes on payroll please navigate to 45+ Pay Stub Abbreviations and Acronyms Decoding Tips What is Long-Term Disability (LTD)? LTD stands for 'Long-Term Disability.' It is a type of disability insurance that protects your ability to earn an income in the event you incur an injury or severe illness.ĭisability insurance provides income coverage after an elimination period for conditions, such as an illness or injury, which would keep you from working for extended periods. When you look at your paystub, you might wonder what the LTD under the benefits section means.
