Disability Insurance at Dell

Learn everything Dell employees need to know about their short-term disability, long-term disability, and voluntary supplemental disability plan insurance coverage.

Disability Insurance at Dell

The Social Security Administration reports that the chances of experiencing a disability event are one in four.

Disability can lead to a decreased standard of living due to income loss, and disability insurance can fill the gap by replacing lost earnings.

Dell’s Short-Term Disability Insurance Policy

After a seven-day elimination period, Dell employees receive 100% of benefit-eligible earnings for days eight through 63 of disability for each new claim incident. Then, Dell employees may receive 75% of benefit-eligible earnings for the subsequent 117 calendar days, up to a maximum of 180 days per incident. These benefits continue for as long as you remain disabled.

Dell’s short-term disability policy is provided by Sedgwick through the Leave and Disability Center, with Dell covering the full cost of coverage.

Dell’s Long-Term Disability Insurance Policy

After a 180-day elimination period, Dell employees receive 60% of benefit-eligible earnings, up to $20,000 per month. Benefits continue as long as you remain disabled for up to 24 months. If after 24 months, you are unable to perform the material duties of any job you could reasonably be expected to perform based on your experience, training and education, benefits can continue to age 65.

Dell’s long-term disability policy is provided by New York Life through the Leave and Disability Center. Dell pays for half the coverage and Dell employees pay $0.101 annually per every $100 unit of coverage based on their annual benefit-eligible earnings.

Dell’s Voluntary Supplemental Disability Plan (VSDP) Insurance Policy

After a 180-day elimination period, eligible employees earning over $200,000 may add VSDP coverage beyond Dell’s long-term disability policy, up to 75% of total earnings (base salary, commission, and bonus), to a maximum of $15,000 per month.

If you become disabled before the age of 65, then you may receive VSDP benefits until age 65. Benefit periods vary for other ages.

Eligible employees who enroll during their enrollment period are not required to go through full medical underwriting. Eligible employees who defer enrollment to a later date may be subject to medical underwriting.

Dell’s VSDP policy is provided by Unum. Rates may vary, but they are discounted by approximately 25% per individual policy.

Example of Dell’s Supplemental Life Insurance

Kelly Lifestyle is 48 years old and earns $250,000 in benefit-eligible earnings at Dell.

Kelly recently became eligible for the VSDP policy and wants to ensure she’s protected if she experiences an event causing a disability. By adding eligible VSDP coverage, Kelly can protect an additional 15% of benefit-eligible income beyond Dell’s standard long-term disability policy.

Here is how the benefits work if Kelly experienced a disability event causing her to miss up to two years of work:

Short-term disability insurance coverage

After a seven-day elimination period, she receives $9,615 (100%) per bi-weekly paycheck from days 8 through 63. Then, Kelly receives $7,212 (75%) per bi-weekly paycheck for the next 117 days through day 180.

Long-term disability insurance coverage

After a 180-day elimination period, Kelly receives $5,769 (60%) per bi-weekly paycheck from days 181 through the end of year two.

VSDP insurance coverage

After a 180-day elimination period, Kelly receives $1,442 (15%) per bi-weekly paycheck from days 181 through the end of year two.

Planning Opportunity for Dell’s Disability Insurance

The short-term and long-term disability policies do not offer portability, meaning you’re not covered once you’re no longer working at Dell.

For non-eligible employees, it’s important to determine if additional long-term disability insurance coverage is needed and find the right solution.

For eligible employees, the VSDP is a valuable perk if additional disability insurance coverage is desired. The VSDP insurance policy is eligible for portability, allowing you to continue paying for the policy even after leaving Dell. Once enrolled in the VSDP, the discounted rates stay the same. And benefits are not further taxed.

If you’re a Dell employee and have questions about disability insurance options, feel free to contact me at brianfry@safelandingfinancial.com.

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Disclosure: Even though many of our clients are current and former Dell employees, Safe Landing Financial is not affiliated, associated, or endorsed by Dell. This information is supplied from sources that we believe to be reliable, however, we cannot guarantee the accuracy. All information is subject to change without notice. Please refer to your Dell benefits guide for up-to-date information.