Disability Products

Short-term Disability (STD)

  • Groups selecting life coverage can also get short-term disability coverage.
  • Disability benefits ensure employee access to cost-effective protection of employee's income in the event of a covered injury of sickness causing time away from the job or permanent disability.
  • Employers may choose Employer-funded or Voluntary options.

Long-term Disability Insurance (LTD)

  • Group LTD is available to groups with as few as two eligible employees and is a cost-effective way to help protect your employees' income in the event of a disabling injury or sickness.
  • Employers may choose Employer-funded or Voluntary options.

Impact of Disability on the Workforce

  • Almost 3 in 10 workers entering the workforce will become disabled before age 67.1
  • In the last 10 minutes, 490 Americans became disabled.2
  • Approximately 90% of disabling accidents and illnesses are not work related; therefore, not covered by workers' compensation.3

These are alarming statistics. It just goes to show how important protection against lost income can be to a workforce. Unfortunately, many people have not planned for the financial burden they will face if they should become disabled and unable to work for an extended period of time.

Helping employees stay at work

  • Our disability coverage encourages employees to continue working as long as they are safely able – protecting their eligibility for benefits and without penalty.
  • Employees are able to satisfy the elimination period with only a loss of duties.
  • We can extend the elimination period up to a year for disabled employees who do not meet the earnings loss amount.
  • An employee doesn't have to be totally disabled to receive benefits.
  • Our disability coverage allows disabled employees to return to work for up to one-half of the elimination period without restarting it if they are unable to endure their return to work.

Protecting employers and employees.

Our disability coverage helps protect employees, which in turn protects the employer's company. Here are a few highlights:

  • Our disability coverage does not have limitations for symptoms that are self-reported or subjective. We manage all employees' claims carefully and effectively.
  • There is a "treatment-free" period within the pre-existing condition limitation. During this period, if the employee does not receive treatment for the pre-existing condition, he or she may qualify for benefits before completing the continuous days of coverage period.

How are Benefits Taxed?


Who Pays the Premium? Premium Taxable? Benefit Taxable?
Employer pays 100%
No Yes
Employer pays 50%
Employee pays 50%
50% 50%
Employee pays 100%
Yes No

The above illustration assumes disability insurance premiums are not deducted on a pre-tax basis in an employer-sponsored cafeteria plan.

Blue Cross and Blue Shield of Louisiana is not engaged in rendering tax, legal or investment advice. We recommend you seek the guidance of a tax professional or financial advisor.

Download Disability Product Information

Download LABI Disability Product Information

1 National Safety Council, Injury Facts, 2010 Ed.

2 U.S. Social Security Administration, Social Security Basic Facts, Aug. 2009

3 Council for Disability Awareness, CDA 2010 Long Term Disability Claims Review