Purchasing long-term disability insurance can be a great way to protect yourself in the event that you become disabled and unable to continue working for a living. Unfortunately, the companies issuing long-term disability (LTD) benefits can make accessing these benefits more challenging than it should be.
For this reason, we have provided additional information below regarding how long-term disability works in Ontario. If you have additional questions that have not been answered on this page, contact our office to discuss the individual details of your case.
Each policy is different, so the amount of time you might be able to collect benefits could be different than your colleagues, neighbors, or anyone else who also has an LTD policy. As a general rule, as long as you are considered disabled, you could collect benefits until you reach sixty-five years of age.
The length of time someone is on long-term disability will be based on how long it takes them to recover. Some people suffer injuries or illnesses and in time they can heal and get back to their lives. Others suffer permanent disabilities and will need to remain on LTD benefits until they reach retirement age.
Each policy has different terms that determine how much the policyholder can collect. It is typically calculated using a percentage of your average monthly earnings. Many policies provide policyholders with around sixty percent of their average monthly wages.
In order to apply for LTD benefits, you will need to file a claim through your long-term disability insurance provider. Your attorney can help you ensure that your application is complete in an effort to avoid a potential denial.
Long-term disability benefits can be taxable, but they can also be non-taxable, depending on the circumstances of your case. While waiting for your attorney to review your policy, a good rule of thumb is to consider your LTD benefits a portion of your wages. Your wages would be taxed if you were able to work, so it’s safe to assume your benefits will also be taxed until your LTD attorney tells you otherwise.
Yes, you can simultaneously collect benefits through the Canada Pension Plan (CPP) and your LTD benefits insurer. However, you will not be able to take advantage of both plans to obtain benefits beyond what you’re entitled to.
Taking in so much information can be overwhelming. We understand. Taking one step at a time can make the entire process a little easier to cope with.
Learn more about what your options are by scheduling a free, no-obligation consultation with a respected long-term disability lawyer at Jasmine Daya & Co. We can be reached by phone at 416-967-9100 or through the quick contact form below when you are ready to get started on your case.