Disability insurance is a form of income protection that keeps money coming in even though you cannot work due to an injury or illness. It could be offered by your employer as a benefit or you may take your own individual plan. Both options have long term and short-term disability benefits which we shall discuss further below.

If you have sustained injuries or an illness that keeps you off work for a long time, talk to our long term disability lawyers

What types of disability insurance are there?

There are two main categories of disability insurance: short term and long term.

If you have sustained injuries or an illness that prevents you from working for 6 months or less, you may be entitled to short term disability benefits. Long term disability insurance, on the other hand, will be awarded after the short-term benefits end and you are still unable to return to work.

There are other types of disability insurance such as disability mortgage insurance which protects your mortgage payments if you become disabled and cannot earn enough money to pay up your mortgage premiums.

Disability insurance plans have several features. For instance, you can take non-cancellable disability insurance which allows only the insured person to cancel the policy. The insurance company doesn’t have control over the policy and cannot cancel it without the policyholder's permission.

What is the difference between short term disability insurance and long-term disability insurance?

If an injury or illness forces the insured to be off work on a ‘’short term’’ period, then he/she is entitled to short term replacement wages. On the other hand, if the injury or illness prevents or limits your ability to work over a long period of time, long term disability insurance helps to supplement your income over the years.

The main difference between long term and short-term disability is the period of time in which the benefits will be offered which will be determined by the nature and severity of your disability.

Who pays for long term disability coverage?

There are different types of long-term disability coverage and the funds to cover the insurance premiums may be obtained from varying sources. For instance, if you’ve taken an individual disability insurance plan, you can pay for it on your own and be entitled to long term disability benefits. If you’re part of a group plan offered at your company or business, the contributions can be fully funded by the employer or deducted from your paycheque. In both cases, it is provided as a form of worker’s benefits. You may also choose to purchase long term disability coverage separately.