This is your online guide to long term disability in Canada for 2023. If you are looking for a broad overview of Canada long term disability insurance, you have found the right article. In this guide, I cover the basics like what is long term disability in Canada, how it works, and more.
But I also go into depth about the application process as well as what happens after approval. Regardless of what claim stage you are at, this article has something for everyone.
This guide is based on my 17 years of experience as an occupational therapist turned disability lawyer. I cover all the key topics and include links to articles that go into greater detail.
There are three types of long-term disability insurance:
Group Insurance
Group disability insurance is the most common. Employers purchase this policy to cover their employees as a group. You cannot buy it directly for yourself. However, when you join your employer’s group medical plan, you apply for it. You then pay premiums for it as part of your payroll deductions. Keep in mind you lose this insurance if you resign from your employment or get fired.
Individual Insurance
Insurance brokers sell individual disability insurance directly to consumers. This insurance only covers you and is not tied to your employment. You can take it with you if you change jobs. Individual insurance has a more extensive application and medical screening process. Once approved, you pay monthly premiums directly to the insurance company.
Special Purpose Insurance
Special purpose plans cover a wide range of situations when you lose your income because of disability:
Applying for insurance coverage is how you enrol in a plan or policy. Without coverage, you cannot file a claim should the need arise. How you apply for coverage will depend on the type of disability policy:
You apply for group insurance coverage through your employer, union or association. You are eligible to enrol because of your status as a full-time employee or member of a union or professional association.
The application involves filling out a form. If the group covered by the insurance is small, you may also have to fill out a medical questionnaire. Or undergo medical tests. With large organizations, there are no barriers to enrolment other than your status as a member of the group. Once enrolled in the plan, you are considered a covered person under the plan. If you later become unable to work, you can file a long-term disability claim under the insurance policy.
Applying for individual insurance is more complicated than group insurance. You will have to provide detailed information about your medical history and undergo a medical assessment and bloodwork.
The insurance company then reviews your medical information to determine if they will agree to offer you a long-term disability insurance plan.
If you have pre-existing medical conditions, it is possible those will be excluded under the policy. For example, you were treated for depression in the past but are currently not having problems. In this instance, an excluded medical condition means you would not be able to file a disability claim for depression. But could be for any other new medical conditions or injuries.
The questions you should as are different depending on whether you are enrolling in a group or individual plan. I cover both below:
Do you need to apply for long-term disability benefits? Are you looking for a simple step-by-step guide? If so, you are in the right place. Follow our 7-step process to complete your application for long-term disability.
A former occupational therapist turned disability lawyer, David has been representing people in disability claims for over fifteen years. David is Resolute Legal's founder and managing lawyer. He is the author of the best selling The Beginner's Guide to CPP Disability, the CPP Application Workbook and A Beginner's Guide to Disability Insurance Claims in Canada.
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