Find this on your benefits enrollment form (typically 0.20 – 0.90).
Please enter valid positive numbers for salary and rate.
Monthly Covered Payroll:$0.00
Premium Calculation Units:0
Estimated Monthly Cost:$0.00
Annual Cost:$0.00
function calculateLTDPremium() {
// 1. Get Input Values
var salaryInput = document.getElementById('annualSalary').value;
var rateInput = document.getElementById('premiumRate').value;
var errorDiv = document.getElementById('ltdError');
var resultDiv = document.getElementById('ltdResult');
// 2. Parse values
var salary = parseFloat(salaryInput);
var rate = parseFloat(rateInput);
// 3. Validation
if (isNaN(salary) || isNaN(rate) || salary <= 0 || rate <= 0) {
errorDiv.style.display = 'block';
resultDiv.style.display = 'none';
return;
}
errorDiv.style.display = 'none';
// 4. Calculation Logic for Long Term Disability (LTD)
// Formula: (Monthly Salary / 100) * Rate
var monthlySalary = salary / 12;
var units = monthlySalary / 100;
var monthlyPremium = units * rate;
var annualPremium = monthlyPremium * 12;
// 5. Update DOM
document.getElementById('displayMonthlyPayroll').innerHTML = '$' + monthlySalary.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayUnits').innerHTML = units.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayMonthlyCost').innerHTML = '$' + monthlyPremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayAnnualCost').innerHTML = '$' + annualPremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultDiv.style.display = 'block';
}
Understanding Your LTD Rate Calculation
Long Term Disability (LTD) insurance is a critical safety net that replaces a portion of your income if you become unable to work due to a serious illness or injury. Understanding how your premium is calculated helps in evaluating your paycheck deductions and benefits package.
How the Formula Works
LTD premiums are rarely flat fees. Instead, they are calculated based on your "covered payroll." Most insurance carriers calculate the premium rate per $100 of your monthly covered salary.
The standard math used in this calculator is:
Determine Monthly Salary: Divide your Annual Gross Salary by 12.
Calculate Units: Divide your Monthly Salary by 100.
Apply Rate: Multiply the result by your specific LTD Rate.
Let's say you earn an annual salary of $60,000 and your employer's plan has an LTD rate of 0.40 (40 cents per $100 of coverage).
Monthly Salary: $60,000 / 12 = $5,000
Units of $100: $5,000 / 100 = 50 units
Monthly Cost: 50 units × 0.40 = $20.00 per month
Why Rates Vary
Your specific "Rate per $100" depends on several factors negotiated between your employer and the insurer, including:
Industry Risk: Physically demanding jobs often have higher rates than office jobs.
Group Demographics: The average age and gender distribution of the employee pool.
Plan Design: Policies with shorter waiting periods (elimination periods) or higher income replacement percentages (e.g., 66% vs 50%) will have higher rates.