Understanding Long-Term Disability Eligibility: Beyond Workplace Injuries

Navigating the intricacies of Long-Term Disability (LTD) coverage can be confusing, especially if your disability didn’t occur at the workplace. In this article, we’ll explore the eligibility criteria for LTD benefits and shed light on common questions.

Qualifying for Long-Term Disability:

Contrary to popular belief, having LTD coverage through your employer doesn’t hinge on workplace injuries. The primary purpose of LTD insurance is to replace your income if you find yourself unable to work due to any injury or disability. The crucial factor is your incapacity to perform your job duties.

Considerations for LTD Qualification:

Most LTD policies cover a broad spectrum of injuries or disabilities preventing work. However, some policies may exclude specific illnesses, and others might exclude conditions compensable under a workplace compensation claim. It’s essential to note that the disability must have occurred while your LTD insurance was active.

Degree of Disability:

To qualify for LTD benefits, you generally need to be unable to perform all or most of your current job duties. Some policies may use the term “completely disabled,” which essentially emphasizes the inability to carry out the normal functions of your job. It doesn’t necessarily mean you’re completely unable to perform any aspect of your job but underscores that your disability requires focused attention for recovery. Certain policies may also require an inability to perform any job for which you are qualified.

Application Timing:

Applying for LTD benefits requires being off work for several months, known as the “elimination” or “qualifying” period. This period typically spans 90 to 180 days (3 to 6 months), as specified in your policy. This waiting period ensures that injuries are genuinely long-term rather than short-term issues that may heal in a few weeks.

Short-Term Disability and Alternatives:

While waiting for LTD benefits to kick in, you might have access to Short-Term Disability coverage or Weekly Indemnity benefits with a shorter waiting period. If these options are unavailable, Employment Insurance Sickness Benefits through the Government of Canada could provide up to 15 weeks of sick benefits, covering approximately 55% of your weekly income.

Understanding the nuances of LTD eligibility beyond workplace injuries is crucial for anyone relying on these benefits. If you find yourself in a situation where you can’t work due to a disability, exploring the details of your LTD policy becomes essential to ensure you receive the support you need during challenging times.