You may be able to receive long-term disability (LTD) benefits in Ontario, Canada for a lengthy period of time. However, it’s natural to wonder what may happen when your LTD policy ends if you, for example, recover from the disability you were facing or reach the age of 65. There are other benefits you may be able to apply to for possible help with additional payments you may have accrued.
When May Your LTD Benefits End in Canada?
Before discussing exactly what may happen when your LTD benefits end in Canada, you may wish to review when these benefits may stop. The exact amount of time you receive LTD benefits may vary based upon the type of LTD policy you have.
Some LTD policies provide compensation for at least two years according to the Financial Consumer Agency of Canada. You may receive these benefits as long as you are unable to work and earn a living. Some policies are designed to offer you benefits for a longer amount of time, with some examples of LTD policies offering benefits:
- Up to five years
- Up to ten years
- Until you are 65 years old
Note that these are only examples of the terms that may be used for an LTD policy. Your policy may offer benefits for a shorter or longer amount of time, so you should review the official documentation of your policy to find out exactly how long LTD insurance may last if you receive it through your employer or through a private entity.
Results of Your LTD Ending Because You Are No Longer Disabled
LTD insurance is designed to provide you with compensation if you experience a disability that prevents you from working and earning a living wage. You may no longer qualify for LTD insurance if you recover from the concerns you were previously facing.
LTD insurance companies may require you to submit to medical testing on a routine basis. You may also be required to go through rehabilitation services to aid in your recovery. If the company believes you have recovered, they may no longer offer you LTD benefits.
Once this occurs, you may return to work. Employers in Ontario may maintain your employment while you are on LTD. You may follow company procedures to go back to your job in this situation. If you do not wish to return to your prior career, or if you are no longer employed, you may seek employment with another company when your LTD insurance policy ends.
Results of Your LTD Ending Because the Policy Expired
LTD policies may not all last for the same amount of time. Some policies may expire before you are fully recovered from the disability that prevents you from returning to work. In this situation, you may have other options to secure funds.
You may need to apply for benefits from the Canada Pension Plan (CPP). Generally, your insurance company may ask you to apply with the CPP even before your LTD policy expires. The CPP may contribute to your payments while you are disabled, but oftentimes may only offset your other payments rather than adding onto them.
You may continue to receive funds through the CPP after your LTD policy expires. This may apply regardless of whether you carried LTD insurance through your employer or through a private policy.
Results of Your LTD Ending Because You Reached the Age of 65
In many cases, LTD policies expire when you reach the age of 65. While some policies offer lifetime benefits, these policies may be far less common that policies that expire as you age.
If you made a minimum of one valid contribution to the CPP, you may qualify for the CPP as part of a retirement pension after you reach the age of 65. However, you may apply for retirement benefits from the CPP as early as the age of 60 or as late as 70. Note that:
- If you start retirement payments early, your payments may be smaller.
- If you start retirement payments later, your payments may be larger.
It may take a significant amount of time for you to begin receiving benefits for retirement through the CPP. You may wait:
- Around 14 days for an online application.
- Around 120 for applications delivered in person or mailed.
Keep in mind the length of time it may take to begin receiving benefits. You may wish to begin the application process before your LTD benefits cease to ensure you do not have a period in which you are not covered.
Focus on What Happens When LTD Benefits End in Canada
You may be able to get further answers to your questions about LTD benefits by contacting Preszler Injury Lawyers. Our team may be reached for a free consultation by calling (416) 364-2000, during which we may be able to offer you information about the end of your LTD benefits.