Voluntary Long Term Disability (LTD) insurance helps replace a portion of your income for an extended period of time ceasing at Normal Retirement Age. 

The benefit amount is 66.67% of your pre-disability monthly earnings to a maximum monthly benefit of $7,000.  Benefits would begin after 90 days of disability. 

To calculate your cost of LTD, you will need to know the following:

• Your monthly eligible payroll – take your annual salary before taxes and divide by 12 to obtain the monthly payroll
• Benefit percentage (66.67%)
• Monthly benefit maximum ($7,000)

If you earn less than $126,000, you will use the exact monthly payroll as your eligible payroll.  If you earn more than $126,000, you will use the max of $7,000 for your eligible payroll.  

To calculate your cost monthly, you will take the eligible payroll / 100 x rate of .630.  You can then take the monthly cost x 12 = annual cost / 52 to obtain the per pay cost for this benefit.