Long Term Disability

Long Term Disability is an effective way of protecting the financial well being of an employee. Illness or injury can create a significant financial hardship. Employees are attracted to employers who offer comprehensive benefits programs because loss of income can have very serious repercussions.

A Long-term Disability benefit is very important in protecting the financial well being of employees. It provides income continuation for the employee who is unable to work as a result of sickness or injury. The benefit period is the maximum amount of time for which LTD benefits are payable.

The most common benefit period is up to the age 65. However, benefit periods of two and five years are not uncommon. The longer the benefit period, the larger the insurer’s liability and therefore the higher the premium.

LTD benefits are based on all source maximum definition, that means LTD benefit payable will include all direct offsets (WSIB benefits and CPP/QPP disability and retirement benefits) and indirect offsets (automobile insurance plan benefits, group or association insurance plans benefits, retirement or pension plan benefits, etc.).

Therefore, when calculating the benefit a disabled employee is eligible for, income from the following sources will be included under the all source definition:

Workplace Safety and Insurance Board benefits;
Canada or Quebec Pension Plan disability and retirement benefits, automobile insurance plan benefits;
Group or Association Insurance Plans benefits;
Retirement or Pension plan benefits;
Earnings or payments from any employer;
Self-Employment income; and
Earnings from any Government plan excluding Employment Insurance benefits.

Let us help you protect your employees; contact us for a no obligation consultation.