Short Term VS Long Term Disability

Having the right kind of insurance is incredibly important, particularly if you end up injured and unable to work. In some circumstances, you may end up needing disability income insurance if you are unable to work for a long period of time. In these situations, it is useful to know the difference between short-term disability coverage and long-term disability coverage.

In this article, we’re going to examine the differences between the two and what it means for your insurance.

Short Term Disability

Under Ontario law, the difference between short-term and long-term disability is defined by the length of time rather than the severity of the disability. Depending upon your particular policy short-term disability usually last for period of 6 months. During this time, you may be entitled to benefits, either paid to you by a private insurance company or you may be entitled to Disability Employment Insurance Benefits (EI).

Short-term disability insurance can be incredibly useful to keep a person on their feet while they recover from injuries that tend to heel quickly, like an uncomplicated broken finger, broken ankle or a broken arm.

Maximum Coverage For Short-Term Disability

Generally, short-term disability insurance coverage is between 60 and 85% of your regular income. You may receive less if you get any other benefits, like EI or CPP. Whether there are deductions from your policy will depend on the terms in your policy, which can be reviewed by one of the lawyers at Ristich Law.

Short-term disability insurance is also unlikely to include any provision for rehabilitation.

Long Term Disability

In Ontario, long-term disability extends past the six-month mark. Before applying for long-term disability insurance benefits, in some instances you must first claim short-term disability benefits prior to applying for Long Term Disability Benefits. This initial period is often referred to as the “elimination period” in your Long Term Disability policy.

Even if you are involved in an accident that causes life-changing injuries, it is still may be necessary to claim short-term disability insurance first. This is why it is critically important that you review the terms of your disability policy with your lawyer.

Maximum Coverage For Long-Term Disability

As with short-term disability, the maximum amount of coverage you can get from long-term disability in Ontario is usually varies between 60 and 85% of your regular income. In some rare instances, certain policies will pay up to 100% of your income.

Long-term disability claims are also much more likely to offer rehabilitation, particularly if there is a possibility you will be able to return to work.

Some Long Term Disability policies are taxable and others are non-taxable and often times a LTD policy will have something called a “Cost of Living Adjustment” (COLA), which increases the payout of your policy pursuant to a particular formula laid out in the terms of your policy.

Who Provides Long-Term Disability Insurance?

While some employers do offer benefits, like disability coverage, not all employers do. There is no legal obligation to provide this coverage and as such, when starting a new job, it is important you find out what your coverage plan details. Usually, you can obtain a “benefits booklet” from your employer which will layout the general details of your coverages.

If your employer covers you but you want to enhance your coverage, you can take out your own form of private coverage, for instances when your employer’s coverage plan does not benefit you.

Do I Need Disability Insurance?

While there is no legal obligation to have disability insurance, it is best to take out some form of cover. If you are injured in an accident and cannot work, (unless you have substantial savings) you will find it difficult to pay bills and medical expenses. Disability insurance ensures that you do not find yourself in this position.

The Role A Lawyer Plays In Your Disability Claim

Making a disability claim can take a lot of time and effort, and if you have been seriously injured, you may not have the capacity to do so yourself. The first step is to have an experienced lawyer review the terms of your insurance policy to make sure you understand all of the benefits which might be available to you, if you qualify for the medical tests.

A lawyer with experience in disability claims will be able to take on your claim and ensure that you get the benefits you need to survive. They will be able to file all of the paperwork and gather the correct evidence to ensure that your claim goes through smoothly to make this time less stressful for you and your family.

At Ristich Law, we want you to focus on your recovery, while we fight the insurance company on your behalf!

Looking For An Experienced Disability Lawyer In Toronto? Call Ristich Law!

Are you looking for a disability insurance policy to cover you for the unexpected? Our team of experienced lawyers can help you to get all the benefits that you are entitled to today! Get in touch with our team to find out how!