DEFINITION: Canada Life Short Term Disability refers to a type of insurance coverage that provides income replacement in the event that an individual becomes temporarily unable to work due to illness, injury, or other health-related reasons. This coverage is typically offered by Canada Life, a leading insurance provider in Canada.
FAQs:
1. What is the purpose of Canada Life Short Term Disability insurance?
– The purpose of this insurance is to provide financial protection and income replacement to individuals who are unable to work temporarily due to a covered disability. It helps to alleviate the financial burden during the recovery period.
2. Who is eligible for Canada Life Short Term Disability coverage?
– Eligibility criteria may vary depending on the specific policy, but generally, employees who work a minimum number of hours and have been employed for a certain period of time are eligible for this coverage. It is commonly offered as part of employee benefits packages.
3. How long does Canada Life Short Term Disability coverage last?
– The duration of coverage varies depending on the policy, but it typically ranges from a few weeks to several months. Most short term disability policies provide coverage for up to 26 weeks.
4. How much income replacement does Canada Life Short Term Disability insurance provide?
– The amount of income replacement provided by this insurance is typically a percentage of the employee’s pre-disability income, often around 60-70%. However, there is usually a maximum limit on the weekly or monthly benefit amount.
5. Are there any exclusions or waiting periods for Canada Life Short Term Disability coverage?
– Yes, like most insurance policies, there may be exclusions or waiting periods before individuals can start receiving benefits. Common exclusions include pre-existing conditions or disabilities resulting from self-inflicted injuries.
6. Can individuals purchase Canada Life Short Term Disability insurance independently?
– In many cases, this type of coverage is provided through an employer’s group insurance plan. However, individuals may be able to purchase this insurance independently, but it is less common and can be more expensive.
7. Does Canada Life Short Term Disability insurance cover accidents outside of work?
– Yes, Canada Life Short Term Disability insurance generally covers accidents or illnesses that occur both inside and outside of the workplace, as long as they are covered under the policy. It provides protection regardless of the cause of disability.