Business Writing: Employee Benefits Letter

Dear Employee:

This letter is to inform you of your current benefits through the Company and to provide information about other potential benefits for which you may be eligible should you not be able to return to work.

Long-Term Disability

Your Long-Term Disability (LTD) claim with the Company's insurance carrier The Standard was approved on July 2, 2020. You are currently receiving $351.85 monthly. Your LTD benefits are currently reduced by income you are receiving from the EDD for State Disability Insurance (SDI). Once your SDI claim is exhausted, you must submit documentation to The Standard showing proof your SDI claim has closed. When The Standard receives that documentation, you may begin to receive the full LTD monthly benefit amount of $3,518.50. Monthly LTD payments will continue until you reach retirement age. Premiums for your LTD coverage are waived.

Social Security Disability Insurance (SSDI)

You may be eligible for federal Social Security Disability Insurance (SSDI). We are not able to project how much you may receive from SSDI, however, the average monthly SSDI benefit is between $800 and $1,800. If you were to apply for and receive SSDI, The Standard would consider these payments as deductible income and would reduce your LTD payments by the SSDI benefit amount. For this reason, pursuing an SSDI claim might not provide you with any additional income.

Life Insurance

In addition to LTD, you have a life insurance policy with The Standard in the amount of $60,000. Premiums for your life insurance policy have been waived. The policy is in effect until age 65.


You currently have a 401(k) account with T. Rowe Price under the Company's 401(k) plan. Normally, there is a 10% penalty for early withdrawal of funds before age 59 ½; however, the 10% tax will not apply if the participant has a qualifying disability. You may reach out to to find out your current 401(k) account balance, ask any questions you may have about your 401(k) account, or to request a distribution. If requesting distribution, please make it clear to the administrator that you believe you have a qualifying disability and would like to avoid the 10% tax for early withdrawal.

Health Insurance

You are currently on the Company's health insurance plan through COBRA. Our COBRA administrator is FlexToday and they may be reached at (800) 995-5373. Your COBRA coverage will expire on September 8, 2021. At that point, you will no longer have the option of remaining on the Company's health plan and may need to make alternate arrangements for health insurance coverage. We recommend looking into coverage with Covered California and/or Medicare. Covered California offers income-based insurance premium subsidies for which you may or may not be eligible. You may apply on the Covered California health exchange marketplace at The phone number for Covered California is (800) 300-1506.


You may also be eligible for Medicare if you are deemed disabled. Enclosed is a flyer which lists different websites containing information about Medicare including checking eligibility, instructions on applying, and other related questions. You may want to reach out to someone at Covered California to see how enrollment in Medicare could affect coverage with Covered California.

We hope this information is helpful, as we would like to help you transition in any way we can. If you have any questions, please do not hesitate to reach out.


Sheila Perkins

HR Manager

Company Name

Enclosure: Medicare Flyer