People who work for large companies often pay into group insurance plans offering long-term disability policies. But for individuals employed by smaller companies who are unable to work for an extended period of time due to a serious medical condition, long-term disability benefits may not be available through their employer’s insurance plan.
If you’re unsure if your company’s insurance plan covers long-term disabilities, consulting with your employer’s human resources department may help you determine any compensatory options that may be available to you should a serious medical condition prevent you from performing the duties of your job.
Types of Long-Term Disability Plans
Long-term disability plans offer policyholders a vital safety net in the event that they become seriously ill or sustain a debilitating injury and, therefore, cannot earn a living for an extended period of time. After exhausting any other compensatory options, such as paid sick leave or short-term disability payments, eligible policyholders may receive monthly long-term disability benefits payments to cover a percentage of their normal wages while they’re unable to work.
In Canada, long-term disability plans usually provide eligible recipients with 60-70% of their regular salary.
To determine whether your company’s group insurance plan covers long-term disability benefits, and to what extent, consulting your company’s insurance schedule or meeting with your human resources department may help provide some clarification.
The Limits of Long-Term Disability Plans
When discussing your company’s insurance plan with your employer, you may also inquire about the terms of your long-term disability policy. Many plans may provide benefits payments to employees who are no longer able to perform the duties of their own jobs because of a newly diagnosed medical condition. However, some plans have stricter eligibility requirements. In these cases, a claimant’s medical condition may need to prevent them from performing any job, even if it is unrelated to their current position, in order to qualify for benefits payments.
Oftentimes, group insurance plans provided by employers may place monetary caps on benefits available to eligible claimants. In these cases, depending on your regular salary, even though your insurance policy may be designed to cover a certain percentage of your salary, the monthly payment cap may be lower than the salary percentage amount stipulated in your policy.
If you have been paying into the Canada Pension Plan (CPP), you may receive CPP disability benefits to offset your insurance provider’s payment amounts.
Supplementing Your Employer’s Group Benefits with a Private Plan
After reviewing the terms of the group insurance plan offered by your employer, you may discover that you are not covered for long-term disability, or that your current plan will not sufficiently cover your expenses, should you be unable to work for a significant period of time.
In these cases, you may consider buying into a private insurance policy that will either supplement your current long-term disability coverage, or provide you with coverage not included in your group insurance plan.
Call Preszler Injury Lawyers Today
If you have questions about the terms of your employer’s group insurance plan, Preszler Injury Lawyers may be able to review your policy and provide useful assistance and advice. Call Preszler Injury Lawyers today at (416) 364-2000 for an initial, free consultation.