Disability insurance is an insurance policy that can protect you and your family from an unexpected illness or accident that leaves you unable to work and earn an income. In most cases, employees obtain such insurance through their employer but there is also the possibility that someone who is self-employed obtains their own insurance.
There are generally two types of disability insurance. The first is short-term disability (STD), which will cover you for a period at a certain amount per week. How much you are entitled to receive and for how long depends on the insurance policy. Generally, STD insurance is provided for a short period of time. Some policies may go up as far as 6 months, but it does depend on the terms of the policy. In cases where there is no entitlement to STD insurance, some employers will provide sick leave or allow vacation days to be used. Each employer is different so you may wish to speak to your employer. If STD insurance is not available and your employer does not offer short-term coverage, you may be eligible to Employment Insurance (EI) sickness benefits.
Long-term disability (LTD) insurance, usually kicks in after your receipt of STD benefits, EI sickness benefits or sick leave. Generally, LTD insurance replaces between 60% and 85% of your regular income, up to a maximum amount, for a specified time if you are unable to perform your employment duties and this is caused by an injury or illness as defined within the policy. Again, each plan is different so the terms would be different
What injuries are covered by my disability policy?
Disability policies usually include a definition that encompasses not only physical, but psychological or mental disabilities. This means that if you are suffering from a severe psychological condition, you may be entitled to such benefits.