Long term disability coverage can provide replacement of your income when you become ill or receive an injury that will prevent you to do your job. This type of disability will normally be paid out on a monthly basis. The amount that will be paid monthly will be a percentage of your total monthly income, normally between 50-80% of your salary prior to your injury.
This type of coverage will differ from workers’ compensation because workers’ comp will only provide benefits for the actual accident as long as it occurred on-the-job. You are eligible for long term disability benefits if your injury or illness took place anywhere even if you weren’t at work and you can no longer do your job as you were capable of doing prior to. Injuries can include automobile accidents, slip and fall accidents, or even a sport accident.
Where can I get/apply for LTD coverage?
You can purchase long-term disability insurance independently from a private insurance company or through your employer. Choosing to go through a private or independent plan allows you more options such as the amount that is paid out to you should you need to utilize the benefits. Choosing independent insurance will also affect that type of disabilities that are covered as well as the waiting period until your first installment is sent to you.
If you choose to be covered under your employers group insurance plan, then the employer will pay either all of your premiums for you or just part of them. In some cases, they will not pay into it at all but will offer it to you. If you are responsible for paying your own long-term disability premiums, and you are injured and start to receive benefits, then the payments made to you are not subject to taxes. However, it is best to discuss your case with an injury lawyer in St. Catharines.
Short-term vs. long-term disability coverage
Many insurance group plans will also include short term disability options. In fact, the short-term disability goes hand-in-hand with the long-term disability option in most cases. With this type of coverage, you can file a claim and receive benefits for a short period of time. If you don’t get any better or are unable to return to your job, you may then receive long term disability coverage instead.
How do I know I’m eligible for LTD payments?
You are eligible for benefits usually up to the second year after becoming disabled. If you are unable to perform your job in a manner without restrictions, you are considered disabled and eligible for payment.
My LTD plan states I must be ‘totally disabled’; what does that mean?
If you are unable to return to work after a reasonable amount of time, you may be considered totally disabled.