Disability Products

Give your clients peace of mind against sickness or disability in the workforce.

Short-term Disability (STD)

  • Groups selecting life coverage can also get short-term disability coverage.
  • Disability benefits ensure employees have access to cost-effective protection of their income in the event of a covered injury or 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 for your group customers to help protect their 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

  • One in four of today's 20-year-olds will become disabled before they retire.1
  • One in eight workers will be disabled for five years or more during their working careers.2
  • In 2015, the overall prevalence of working-age people (ages 21 to 64) with a disability in the United States was 10.7 percent.3
  • Approximately 95% of disabling accidents and illnesses are not work-related, so workers' compensation doesn't cover them.4

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 keep working as long as they can safely do so – 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. For example:

  • 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.

1 Bureau of Labor Statistics, 2014 Census of Fatal Occupational Injuries (finalized April 2016)

2 Council for Disability Awareness, July 2013 Disability Statistics

3 2015 American Community Survey

4 Council for Disability Awareness, Long-Term Disability Claims Review, 2013