September 25, 2020  
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Long Term Disability Insurance

The Long Term Disability program provides income replacement and protection against long term loss of income due to injury or illness.

Participating groups can design their own Long Term Disability plan and determine the level of income replacement offered to Plan Members. Benefits typically commence after 17 weeks of disability, or at the expiration of the Short Term Disability plan, where applicable.

The tax status of the LTD benefit is determined by whoever pays the premium. If the Plan Member pays 100% of the premium, the benefit does not attract income tax if they become disabled. When the plan sponsor pays the premium (or any portion of the premium) the benefit is taxable when collected.

Common features of the Long Term Disability program include:

  • Continuation of benefits until age 65 or earlier recovery
  • Flexibility in plan design
  • Generous overall monthly maximum benefits
  • Worker’s Compensation, no-fault auto insurance, group retirement or pension plan and primary CPP/QPP benefits are direct offsets

Long Term Disability Insurance Rates

Rates for Long Term Disability Insurance considers both the demographic and financial results of the entire LTD pool and your individual group.

By joining the Long Term Disability program, member organizations are able to obtain cost-effective, flexible protection for their Plan Members.

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If you have any further questions, please contact us; we'll be glad to help you.

Last updated on:  Friday, September 24, 2004  Page: 

This information is not intended for use without professional advice. While we have attempted to make this site as accurate as possible, it is only a summary. For more information, see our disclaimer.

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