Understanding Short and Long Term Disability Insurance


Many Canadian employers offer group disability insurance plans to their employees, which are intended to provide some degree of income replacement in the event that the employee is seriously injured or becomes too sick to work.

Short term disability insurance

Once an employee has used all of their allocated sick days, but remains unable to work due to injury or illness, they may turn to a short term disability (STD) plan for interim income replacement coverage.

These types of plans usually cover a percentage of an employee’s weekly earnings for a period of up to six months. The total available, and length of coverage, will depend on the specific plan. Many plans include waiting periods or other forms of limitations, and in some cases, employers do not offer STD insurance at all.

Long term disability insurance

When an employee has exhausted their short term options, including employment insurance and STD, they may be eligible for long term disability (LTD). For the most part, LTD plans do not make any payments until six months after the onset of disability.

If an employee continues to be disabled and cannot do the job they held before becoming disabled, LTD benefits will pay out a percentage of their earnings for up to two years. After two years, the qualification requirements for LTD changes. In order to continue collecting LTD after 24 months, the employee must be unable to perform any occupation for which they are reasonably suited by education, training or experience.

In any case, disability insurance payable under a group plan is usually offset by any payments to which you may be entitled, including workers’ compensation or CPP benefits.

Skilled Toronto lawyers offering disability insurance advice to claimants

At Jasmine Daya & Co., our lawyers advise injured and disabled clients making claims for short term and long term disability insurance benefits. We have over four decades of experience advocating for claimant’s rights, and know how to fight the insurance companies when they have wrongfully denied a claim.

If your claim for short term or long term disability insurance coverage has been denied, we can help you determine whether to pursue a legal claim. New clients can meet with a member of our team for a free consultation to learn about their options. To set up your appointment, call 416-967-9100 or contact us online.