DEFINITION:Long-Term Disability (LTD) Canada: Long-term disability is a form of insurance coverage that provides financial benefits to individuals who are unable to work due to a serious illness, injury, or disability for an extended period of time. In Canada, this coverage is typically provided by employers or can be purchased privately.
1. What does long-term disability insurance cover?
Long-term disability insurance typically covers a percentage of your pre-disability income, usually around 60-70%. It provides financial assistance when you are unable to work due to a qualifying disability for an extended period of time.
2. How do I qualify for long-term disability benefits?
To qualify for long-term disability benefits, you usually need to meet certain criteria specified by your insurance policy or employer. This may include proving that you have a disabling condition supported by medical evidence and demonstrating that you are unable to perform the essential duties of your occupation or any other suitable occupation.
3. What is the waiting period for long-term disability benefits?
The waiting period, also known as the elimination period, is the period of time you must wait before you become eligible to receive long-term disability benefits. The waiting period varies depending on your insurance policy or employer, but it is typically around 90 to 180 days.
4. How long do long-term disability benefits last?
The duration of long-term disability benefits varies depending on the terms of your insurance policy or employer’s plan. Some policies provide benefits until you reach the age of 65, while others may provide benefits for a specified number of years or until you are able to return to work.
5. Do I need a lawyer to apply for long-term disability benefits?
While it is not mandatory, consulting with a lawyer experienced in disability law can greatly increase your chances of a successful claim. They can help you navigate the complex application process, gather supporting evidence, and ensure that you meet all the requirements to maximize your chances of approval.
6. Are long-term disability benefits taxable in Canada?
In Canada, long-term disability benefits received from an employer-sponsored plan are typically considered taxable income. However, if you personally funded the premiums for your policy, then the benefits may be tax-free.
7. Can my long-term disability benefits be terminated?
Yes, long-term disability benefits can be terminated under certain circumstances. Common reasons for termination include improvement in your medical condition that allows you to return to work, failure to provide requested documentation or attend medical examinations, or reaching the maximum duration allowed by your policy. It’s important to understand the terms and conditions of your policy to prevent unexpected termination.