Many people have long-term disability coverage through their workplace. In addition to that, there is partial disability coverage in Ontario under no-fault automobile insurance policies available to car accident victims. Some people, especially professionals, purchase individual, private policies of disability coverage instead of signing up through an employer as part of a group. For more details about the different types of long-term disability insurance policies available in Barrie, reach out to one of our lawyers.
Most insurance policies in Barrie provide coverage for two years to those who are unable to perform their jobs due to a long-term disability or illness. After two years, continued coverage generally depends on whether you can do any job for which you are reasonably suited by education, training, or experience. This is called the “any occupation test.” Some private insurance companies use the “any occupation test” for initial coverage, but the vast majority only use it after two years to determine a claimant’s eligibility for continued long-term disability benefits.
Most policies cover someone until the age of 65 regardless of whether they intended to work later or retire early. However, some policies taken out by business owners may only provide coverage for a short period of time. For example, we have seen policies that cover people for as little as two years. The scope of coverage will also depend the percentage of benefits that are included in your policy. Some policies pay an individual 50 percent of their wages, while others pay 70 percent.
The range of premiums is going to depend on your health, your age, where you are working, and how much coverage you have. Premiums can be tens of dollars per month to hundreds or even thousands of dollars per month, depending on the range of coverage. The average person in the average workplace is probably paying $100 or less per month. In some cases, the employer pays the premiums – especially those involving public sector workers. It’s important to note, however, that if the employer pays your premiums, the benefit is taxable. If you pay your premiums, the benefit is tax-free.
If you have long-term disability coverage through your employer, you won’t be able to choose between different types of insurance policies. On the other hand, if you are buying a policy yourself, you should look at the pre-existing condition clauses and see if any of them would threaten your entitlement to benefits. You should also look at the percentage of coverage (i.e. whether it covers 50, 60, or 75 percent of benefits) as well as whether a policy includes a “known occupation” or “any occupation” clause. It’s also important to look at whether an insurance policy allows you to increase coverage over time or limits the amount to whatever is covered when you first purchase it.
If you applied for a long-term disability benefits and were approved, a lawyer does not need to be involved. However, if you have been denied, a lawyer from our firm could handle communications with the insurance company on your behalf. While it may not be an option to choose between different types of long-term disability insurance policies in Barrie when you’re covered through an employer, dealing with the insurance company once litigation has started can be made easier with the help of a local lawyer. Call Rastin Law today to learn more.