Most major companies offer a slew of employee benefits.  The ones most people are familiar with are the group health, dental, vision and life insurance policies.  But one that is often overlooked is the long-term disability insurance. Why is that? Often it’s overlooked because it’s not understood. There are questions like: What really is long-term disability? How does it work?  What does it cost? Let’s answer the most common questions now.  

    1. What is long-term disability insurance? Long-term disability (LTD) is an insurance that provides you, the Lockheed Martin employee, income replacement should you become disabled due to a covered sickness or injury.  Think of the Aflac commercials and how the duck helps fills the holes with additional dollars.  That’s similar to what the Lockheed Martin LTD policy does for you.  
    2. How much does it cost? The cost is determined through a calculation based on your annual base pay. To figure your specific cost, you will need to contact the Lockheed Martin Employee Service Center at 866-562-2363. 
    3. How much income replacement is provided? The amount of money you receive while on a claim depends on the amount for which you enrolled.  Typically, an LTD policy covers 60% of your base pay; however, there is also a choice of 50% coverage.  
    4. Is it taxable? The benefit you receive while on a claim is tax-free since the premium which is automatically deducted from your paycheck is on an after-tax basis.  
    5. How does it work? If you become disabled, cannot return to work and are under a doctor’s care for longer than 6 months, then you can submit a claim to your LTD carrier. If approved, then your LTD policy starts paying you a tax-free monthly benefit to replace your lost income.  
    6. Is there a waiting period? Yes, it is 180 days and is often referred to as either the waiting period or elimination period.  During this time, your group short-term disability often covers your needs.  
    7. How long does it pay out? Payments typically end when you have recovered from your disability and have gone back to work.  If you are unable to return to work, then there are maximums set to the number of months it will payout based on your age when the disability began.
    8. What disabilities are covered? Just about any physical disability, pregnancy, along with some specific mental illnesses and substance abuse, but note that the benefit payment limitations for mental illness and substance abuse is only 24 months.
    9. What is not covered? Attempted suicide or self-inflicted injuries, anything resulting from terrorism or felonious crimes, anything while incarcerated, anything not under the care of a doctor and anything from pre-existing conditions.  
    10. What are considered pre-existing conditions? The official definition specific to the Lockheed Martin LTD policy is: A “pre-existing condition” includes any injury or sickness for which you incurred expenses, received medical treatment (including diagnostic measures), took prescribed drugs or medicines or for which a reasonable person would have consulted a Physician.
    11. Will benefits be reduced if there is other income? Yes, the benefit may be reduced if you are also receiving income from other sources such as a pension, sick leave, social security, income, Workman’s Compensation, VA disability.

Savannah, Georgia

  • Population: 145,862
  • Median home price: $225,000
  • College perk: You can buy the work of up-and-coming artists and designers at the Savannah College of Art and Design’s retail store. Free tuition for residents 62 and older at Savannah State University and the Armstrong Campus of Georgia Southern University.
  • Features: Arts, film, fashion, botanical scenery, notable seafood restaurants, Savannah Film Festival, one of the largest National Historic Landmark Districts, Georgia History Festival, Super Museum Sunday, beautiful parks, Tybee Island’s South Beach, The Landings golf community, Effingham Health System, no state income tax for Social Security benefits.
  • Link: https://www.visitsavannah.com/

Richmond, Virginia

  • Population: 228,783
  • Median home price: $258,000
  • College perk: Retirees can join Virginia Commonwealth University’s Commonwealth Society for short courses, lecture series, and travel opportunities.
  • Features: W.E. Singleton Center for the Performing Arts, Institute for Contemporary Arts, Modlin Center for the Arts, Altria Theater, Virginia Museum of Fine Arts, Virginia Science Museum, Black History Museum, Elegba Folklore Society, Virginia Holocaust Museum, James River, pedestrian bridge at Belle Isle, Virginia Capital Trail, many restaurants providing plenty of ethnic culinary options, Richmond Beer Trail, shopping, no state income tax on Social Security benefits.
  • Link: http://www.richmondgov.com/common/Visitors.aspx

Flagstaff, Arizona

  • Population: 73,964
  • Median home price: $362,000
  • College perk: Northern Arizona University works with retiree volunteers to partner with the city’s dozens of nonprofits.
  • Features: San Francisco Peaks, Ponderosa pine trees, top-tier dining, award-winning craft beers, Flagstaff Medical Center, bicycle-friendly community, skiing, Grand Canyon (90 minutes away), concerts, no state income tax for Social Security benefits, hiking trails.
  • Link: https://www.flagstaffarizona.org/

Claremont, California

  • Population: 36,478
  • Median home price: $719,000
  • College perk: Claremont Avenues for Lifelong Learning allows people aged 60 and older to audit college courses at seven colleges for free.
  • Features: Art shows, live performances, many independently-owned businesses and restaurants in the downtown area, Claremont Farmers and Artisans Market, Claremont Pie Festival, Halloween Spooktacular, 23 parks, Claremont Hills Wildness Park, San Gabriel Mountains, Angeles National Forest, hiking trails, Rancho Santa Ana Botanic Garden, consistently sunny weather, Metrolink train system, Chino Valley Medical Center, Glendora Community Hospital, retirement communities, Pilgrim Place Festival, no state income tax for Social Security benefits.
  • Link: https://www.ci.claremont.ca.us/

While this isn’t a comprehensive list, these are great cities for retirees based on the mentioned considerations. The “relaxing” part of retirement is more fun to think about of course, but equally important is determining how to finance your retirement. Strittmatter Wealth Management Group offers retirement workshops to Lockheed Martin employees and others interested in learning about the ins and outs of saving for retirement and spending in retirement. Sign up for a workshop or book an appointment with a Lockheed Martin Retirement Specialist!  

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.

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