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Health & Welfare: Group Long-Term Disability (LTD)

Would you have access to a sufficient source of income if you became disabled? State Farm offers its employees Group Long-Term Disability (LTD) coverage that provides you with regular monthly income if you become totally disabled and unable to work for a prolonged period of time due to illness or injury. Having employee long-term disability insurance is an important part of your financial planning.

General Information

State Farm provides the opportunity to choose between two employee long-term disability (LTD) options:

  • A benefit of 50 percent of your pre-disability State Farm base salary, or
  • A benefit of 60 percent of your pre-disability State Farm base salary.

Your spouse and dependent children are not eligible for LTD coverage.

For the first 12 months after your employee long-term disability insurance is effective, or if you have increased the amount of your coverage, there are some restrictions on coverage for conditions for which you have recently seen a doctor or been treated. You will only have the ability to adjust your coverage amount during the Annual Enrollment Period. Your new coverage selection would become effective the following January 1.

Benefits begin on the later of 180 days of disability or at the end of the State Farm Short Term Disability Plan.

The Long-Term Disability benefit is coordinated with, or reduced by, other disability/retirement benefits and/or Social Security benefits which you or your dependents, if applicable, receive or are assumed to receive. The benefit will also be reduced by any salary the employee receives in an attempt to work within the restriction of their disability.

To decide which option represents the best fit for you, determine how much income you have after you pay taxes and compare that to the amount each option provides for replacement income. Remember, even if you become disabled, many of your basic expenses such as housing and food will continue. However, you might spend less for clothing and commuting. Long-Term Disability coverage is paid for entirely by the employee. If you receive benefits from the Plan, they are not subject to taxes.

Enrollment Details

Remember, enrollment in any State Farm plan is optional. However, if you choose not to enroll in the Long-Term Disability Plan and change your mind at a later date, you will have to prove insurability, at your own expense. This means you will need to complete an Evidence of Insurability form and you may need to pay for any medical records requested or possibly a physical exam.

Protect yourself and your family. State Farm encourages you to review your benefit options carefully and make informed decisions.


This brief overview of the State Farm Group Long-Term Disability Plan is not intended to be a complete explanation of plan features. For more detailed information, please refer to the State Farm Insurance Companies Long Term Disability Insurance Plan Summary Plan Description.