Purchasing long-term disability insurance is the best way to protect your financial livelihood in the unfortunate case of personal injury—especially if you’re self-employed. Unlike worker’s compensation, long-term disability insurance covers accidents on and off the job, providing you with an additional layer of economic security in times of hardship. Whether you’re researching long-term disability insurance benefits for the first time or you were recently injured and you’re trying to understand the fine print in your policy, the insurance solutions team at DFSIN TORONTO WEST has compiled a guide for understanding the length of your plan.
7 Ways to Determine the Length of Your Long-Term Disability Insurance Benefits
1. Maximum Benefit Period
In short, the length of time that you are eligible to receive your long-term disability insurance benefits varies from policy to policy, as well as the circumstances of your particular situation; however, all plans should contain a maximum benefit period (sometimes referred to as maximum duration or maximum indemnity period) that is clearly stated in your policy. This can range from one month to several years; there are even some plans that provide benefits until the age of 65, and others that offer lifetime coverage. During the benefit period, you can expect to receive anywhere between 65-85% of your monthly income.
2. Understanding Disability Definitions
After you’ve carefully reviewed the section of your policy that defines your maximum benefit period, you can move on to the definition of disability. There are typically two different types of disability described in long-term disability insurance policies: own occupation and any occupation. The former refers to an injury that prevents you from performing whatever’s stated in your job description; the latter describes a disability that inhibits your ability to perform any type of work whatsoever. Your insurance provider will be able to help you determine which type of disability you have so that you can figure out how long your benefits will last.
3. Evaluating Limitations and Factors
As you’re perusing your long-term disability insurance policy to determine how long you will receive benefits, you should also pay close attention to any limitations. Mental health conditions such as depression or anxiety may have shorter maximum benefit periods than a physical injury. Your age, occupation, and health history may also be deciding factors for the length of your long-term disability insurance plan. When in doubt, check your plan, speak with your provider, and plan on visiting your doctor.
4. Recurring Assessments
Many long-term disability policies involve periodic reassessments of your condition and ongoing eligibility for benefits. These reassessments ensure that the long-term disability insurance benefits provided align with your current health status and limitations.
5. Return-to-Work Incentives
Some policies offer incentives to encourage returning to work, providing partial long-term disability insurance benefits if you’re able to work part-time or in a reduced capacity. Understanding these incentives can aid in planning for a smooth transition back to work while still receiving necessary support.
6. Coordination with Other Benefits
Long-term disability insurance benefits might coordinate with other benefits, such as Social Security Disability Insurance (SSDI) or retirement benefits in Ontario. Understanding how these insurance benefits align can impact the duration and amount of your overall support.
7. Policy Review and Professional Guidance
Regularly reviewing your policy and seeking guidance from insurance professionals can clarify any ambiguities and ensure you’re fully aware of the duration and extent of your coverage. Professional guidance offers insights tailored to your specific circumstances.
Get Long-Term Disability Insurance Now
Understanding the nuances of long-term disability insurance benefits requires careful attention to policy details and definitions. With expert guidance and a clear understanding of your policy, you can navigate the duration of your disability insurance benefits confidently. For long-term disability insurance solutions in Ontario, contact DFSIN – Toronto West (Desjardins Financial Security Independent Network) today.
