DEFINITION:Long-term disability (LTD) in Canada refers to an insurance benefit that provides income replacement for individuals who become unable to work due to a prolonged illness, injury, or disability.
FAQs:
1. How long does long-term disability last in Canada?
Long-term disability benefits typically last until you reach the age of 65, or until you are deemed medically fit to return to work. However, the exact duration can vary depending on your specific insurance policy.
2. Does everyone in Canada receive long-term disability benefits?
No, long-term disability benefits are typically provided through employer-sponsored group insurance plans or individual policies. Therefore, only individuals who have these insurance policies in place are eligible for such benefits.
3. How much of my income will I receive through long-term disability benefits?
The amount of income replacement you receive through long-term disability benefits varies from plan to plan. Generally, it ranges between 60% to 80% of your pre-disability income.
4. Are long-term disability benefits taxable in Canada?
The taxation of long-term disability benefits depends on how the premiums were paid. If the premiums were paid by you (considered non-taxable income), then the benefits will be taxable. However, if the premiums were paid by your employer (considered taxable income), then the benefits will be tax-free.
5. Can you apply for long-term disability benefits after a pre-existing condition worsens?
Yes, you can apply for long-term disability benefits if your pre-existing condition worsens, as long as you meet the eligibility criteria outlined by your insurance policy. However, keep in mind that specific limitations and waiting periods may apply.
6. What should I do if my long-term disability claim is denied?
If your long-term disability claim is denied, you have the right to appeal the decision. Contact the insurance company to obtain the reasons for the denial and seek legal advice if necessary. Gathering medical evidence and seeking support from healthcare professionals can significantly strengthen your appeal.
7. Can I work part-time while receiving long-term disability benefits?
Some long-term disability policies allow you to work part-time and still receive a portion of the benefits. However, the amount of income you earn from your part-time work may affect the total benefit amount you receive. Make sure to review your insurance policy or consult with the insurance provider to understand the specific rules and limitations related to part-time work.