Disability Insurance

There are two types of disability insurance coverage in Canada available short and long term. Long Term Disability Insurance is an essential component of our benefit programs. Short Term disability Insurance is an optional benefit that can be added to your program.

Long Term Disability Insurance (LTD)

When an employee needs to be off work for a long period of time (over 17 weeks) due to an injury or illness, the Long Term Disability feature offers income replacement and protection against long-term loss of income. Initially, an employee would be covered through either Employment Insurance, a sick leave plan or through a Short Term Disability plan. After that limit is reached, they would be covered under the Long Term Disability feature.

Rates for this component are based on specific employee demographics such as age, gender, job classification and income. To be able to provide a quote, we would need to be provided with this information, as well as a copy of any previous benefits contract or billing.

Common features include:

  • Benefit amount can be tiered, i.e. 66 2/3% of first $3,000 of monthly earnings plus 45% of the balance, or can be a flat benefit amount based on income i.e. 66 2/3% of monthly earnings
  • Benefits can continue until age 65 if the employee continues to be disabled.

Short Term Disability Insurance (STD)

You may choose to provide your employees with protection against short term loss of income due to an injury or illness. Short Term Disability is sometimes referred to as Weekly Indemnity Insurance.

Here are some common features of the program that can be tailored to meet your needs:

  • Benefit payments can begin on the 1st day of disability for accident or 8th day for sickness. Different options for the waiting period are available.
  • Maximum benefit duration is typically 17 weeks, to match the Long Term Disability waiting period.
  • Benefit amounts are 66 2/3% of weekly income. Different options of benefit maximums are available.
  • Coverage terminates at the earlier of age 65 or retirement.