Long-term disability (LTD) benefits assist those experiencing severe medical problems over a prolonged period.
Typically, LTD policies cover between 60% and 85% of a person’s income. However, some plans have a maximum benefit amount and a designated timeline for how long payments can be received.
Some clauses in LTD policies exclude income sources such as Canada Pension Plan (CPP) or Workplace Safety and Insurance Board (WSIB) payments. This offset amount will be determined based on other benefits you may already be receiving.
Your LTD benefits may also increase by 1% to 3% due to annual inflation adjustments. This cost-of-living adjustment can bring you higher payments in subsequent years.
Generally, LTD benefits are paid out once the elimination period is over—which might range from a few months to an entire year, depending on your policy. Insurance companies typically offer an elimination period between four and 52 weeks.
Which Conditions Qualify for LTD Benefits?
A diagnosis alone is not enough to qualify for LTD benefits. Rather, it requires a thorough evaluation of your condition according to each policy's criteria before LTD coverage can be approved. Each plan will have specific requirements that must be met for a claim to move forward. This evaluation also determines the monetary compensation you may receive if accepted.
To qualify for LTD benefits, your disability must render you unable to carry out all or most of the functions in your current occupation.
How Long Can You Stay On Long-term Disability?
The length of LTD coverage you will receive depends on your policy. Generally speaking, LTD policies provide financial aid for at least two years or until you can return to work and cover your everyday living expenses.
Many policies have extended compensation periods, including up to five years, 10 years or until you reach age 65. If you are no longer disabled, your LTD benefits may be immediately terminated. Insurance companies providing such coverage often require regular medical examinations to monitor your condition.
You may also be required to undergo rehabilitation to help with recovery. Once your insurance company verifies that you have fully recovered from your ailment, it may terminate your long-term disability benefits.
In most cases, LTD benefits expire once you turn 65. However, you may continue with other policies with lifelong benefits. For example, if you contributed the minimum amount to CPP, you will still receive financial assistance after age 65.
Find a Long-Term Disability Lawyer in Canada
LTD policies have varying expiration periods. An experienced lawyer can help you go through the intricacies of your policy and assist you in making a claim and navigating the claims process if necessary.
At Walter Law Group, our team of long-term disability lawyers is committed to ensuring our clients get the compensation they’re entitled to. If you need help with your LTD claim or need any other legal assistance, don't hesitate to reach out. Visit our website today and let us make sure that your rights are well-protected.
