DISABILITY COVERAGE
When faced with loss of income as a result of a disability many people will not have the resources to maintain the necessities of life. Disability Coverage will help to ensure that plan members have a source of income should they become disabled and be unable to work while on or off the job for certain periods of time. However Disability Coverage will not fully replace their income. There are two types of Disability Coverage:
- Short-term Disability - replaces a portion of the plan member's salary for up to six months if he/she is unable to work due to illness or injury
- Long-term Disability - replaces a portion of the plan member's salary for 2 years, 5 years, or up to age 65 if he/she is unable to work due to illness or injury, depending on the insurer and the plan
Disability Coverage does not provide plan members with their full salaries. The benefit paid is generally based on a percentage of the plan member's pre-disability gross earnings. The percentage will vary depending on the insurer and the plan. If the employer is paying all or part of the Disability Coverage, the benefit will be taxable when received. If the plan member is paying for the Disability Coverage in its entirety, the benefit will be tax-free when received. For lengthy disabilities, some insurers offer a Cost of Living Adjustment (COLA) option that indexes the disability payment based on the Consumer Price Index (CPI).
What kind of disability would qualify a plan member to receive a disability benefit?
- An individual is considered disabled if he/she is determined medically to be unable to perform the essential duties of his/her own/regular occupation.
- An individual is considered disabled if he/she is determined medically to be unable to perform the essential duties of any occupation for which he/she is reasonably qualified by training, education or experience.
Short-term or long-term disability can happen to anyone at any age. Disability Coverage protects plan members from possible loss of income due to illness and injury and will help to ensure that they can continue to take care of themselves and their families.
OCCUPATIONAL ACCIDENT COVERAGE
Occupational Accident Coverage is an alternative to the WSIB (Workplace Safety & Insurance Board). It is flexible and comprehensive, providing plan members with greater access to services including rehabilitation, therefore enabling plan members to return to work more quickly. This benefits both the plan member and the employer. Occupational Accident Coverage is also a cost effective alternative to workers compensation for those employers for whom WSIB is not compulsory but who recognize the importance of providing employees with on the job accident coverage. It may cover the plan member while traveling on company business in addition to coverage while on the premises of the employer.
Occupational Accident Coverage provides protection in the event of accidental death or specified injuries resulting from an accident and may include:
- Accidental Death and Dismemberment Benefits
- Paralysis Benefits
- Permanent Total Disability Benefits
- Accidental Weekly Indemnity
- Rehabilitation
- Repatriation
- Spousal occupational training
- Family transportation
- Burial expenses
There are many advantages to Occupational Accident Coverage:
- The plans are flexible
- Coverage can include non-work injuries
- The costs are determined by the extent of coverage and the premium costs can be lower than WSIB premiums
Contact the Blevins Team for more information.
