Each plan is different, but generally, long-term disability plans will pay 60-80% of the income you earned at the time of your disability, up to a maximum amount. This amount is paid monthly. The specific terms of payment amount and timing are specified in each plan.
Assuming you continue to meet the test for disability, long-term disability benefits are usually payable until you reach 65 years old. Again, this is plan specific and can vary. The benefits may also stop if you recover from the illness or injury, refuse to submit ongoing proof of disability, pass away, or retire.
Usually, if you contribute to your long-term disability benefit premiums the benefit is not taxable. If the premiums are paid for by your employer, they are likely taxable and you would have to pay income taxes on any long-term disability benefits received.
If you are receiving income from another source while also receiving long-term disability benefits, your benefit amount may be reduced. This will depend on what other income is being received. Depending on the plan, the long-term disability insurer may deduct WSIB benefits, termination pay, income other long-term disability plans, and CPP-D benefits from your monthly long-term disability benefit entitlement.
Most insurers have a process to appeal a denial of long-term disability benefits. However, it is not always necessary to go through multiple rounds of appeals before deciding whether to proceed with litigation. Consulting with a personal injury lawyer or disability lawyer early in the process will allow you to make an informed decision about whether it is the right time to commence a lawsuit for your unpaid and/or denied long-term disability benefits.
Luis Quail is a founding partner of Quail Warfe Kreder LLP and practices personal injury, disability and employment law in Ontario, Canada. He represents clients with an emphasis on educating them to make the best decision possible for their specific needs.
If you or someone you know has been denied long-term disability benefits and would like a free consultation with a lawyer, please contact Luis Quail of Quail Warfe Kreder LLP at 416-795-0683, lquail@qwklawyers.com or visit his website at www.qwklawyers.com.
