There are numerous myths and misconceptions about long-term disability benefits. So let’s uncover some of those myths!
Myth #1: Canadians believe is that long-term disability (LTD) benefits provide 100 per cent of their pre-disability income.
However, the truth is that benefits typically provide a percentage of your pre-disability income, which can help cover living expenses while you are unable to work.
Most LTD insurance policies pay between 60 and 80 per cent of your pre-disability income. The exact amount varies according to your policy and the severity and type of disability.
Myth #2: LTD benefits only last a certain period of time.
That is true, to a point. How long you are entitled to receive long-term disability benefits depends on the wording of your insurance policy. Most policies provide for disability payments up to age 65, if you meet the definition of total disability. Some policies have shorter benefit periods and a few provide for payments beyond age 65.
You must have completed the required waiting period, also known as the elimination period, which is the time you must be continuously disabled before you are eligible to receive LTD benefits. This period is typically specified in your insurance policy and can range from 90 to 180 days.