June 2, 2020  
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Long Term Disability Insurance

The WRLA Long Term Disability program also offers income replacement and protection against long term loss of income due to injury or illness. This benefit is typically designed to integrate with the WRLA Short Term Disability program, but can coordinate with EI or a sick leave plan.

Features of the Long Term Disability program include:

  • Payment of benefits until age 65 or earlier recovery
  • Benefit amount is 66.67% of 1st $2,600 of monthly earnings, 50% of next $2,200 and 45% of balance
  • Coverage is available up to a monthly maximum benefit of $6,000
  • Worker’s Compensation, no-fault auto insurance, group retirement or pension plan and primary CPP/QPP payments are direct benefit offsets
  • Coverage terminates at earlier of retirement or age 65

The taxable status of the LTD benefit is determined by whoever pays the premium. If the employee pays 100% of the premium, the benefit does not attract income tax if you become disabled. When the employer pays the premium (or any portion of the premium) the benefit is taxable when collected.

Notes: Disability definition is commonly based on the ‘2-year own occupation’ definition. This means that the employee is considered disabled for his or her own occupation during the first 2 years of disability and thereafter is considered disabled for any occupation that is suitable by virtue of past training, education or experience. Some restrictions apply with respect to pre-existing medical conditions.

Long Term Disability Insurance Rates

Rates for the Long Term Disability Insurance are based on the specific demographic characteristics of each WRLA member. A copy of any previous contract and billing would be required, along with the age, sex, job classification, and earnings of employees.

Note: This summary is intended to provide a brief description of the benefits available under the WRLA group insurance program. This material does not create or confer any rights. The exact terms and conditions of your benefits are outlined in the applicable group benefits agreements or policies. Some restrictions and/or limitations may apply to all benefits mentioned above. Please contact the WRLA or Morneau Shepell for full details.

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Last updated on:  June 1, 2012  Page: 

This information is not intended for use without professional advice. While we have attempted to make this site as accurate as possible, it is only a summary. For more information, see our disclaimer.

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