What Happens When Long Term Disability Ends?

Long Term Disability (LTD) benefits provide essential income support for individuals who are not able to work due to a serious illness or injury. These benefits are crucial for sustaining your income throughout prolonged periods of illness or recovery. But what happens when long term disability ends? Understanding your rights, responsibilities, and options when your long term disability benefits come to an end is crucial for financial planning and overall well-being.

This article will explain the basis of LTD benefits in Ontario, when and why they end, and how a long term disability lawyer can help you efficiently through this process.

Definition and Purpose of Long Term Disability Benefits

Long term disability benefits are intended to partially replace income for individuals who are unable to work for a prolonged period due to illness, injury, or a medical condition. These benefits will generally start after a waiting or elimination period that follows the conclusion of short term disability or Employment Insurance (EI) sickness benefits.

LTD benefits are covered by your insurance company or group disability policy of your employer and are intended to substitute a portion of your regular earnings while you are being treated and undergoing treatment as fully disabled. LTD benefits help ease financial stress and allow you to focus on recovery without the extra pressure of returning to work right away.

How Much Do LTD Benefits Pay?

While the exact amount depends on the terms of your disability policy, most LTD policies in Ontario replace 60% to 70% of your predictability income, capped. The benefits may also be offset by other benefits, such as Canada Pension Plan (CPP) disability benefits, retirement benefits, or workers’ compensation. This means your LTD payments may be reduced if you are also receiving disability benefits from other sources such as CPP disability, retirement benefits, or workers’ compensation.

The duration and amount you’ll receive will depend on your LTD policy conditions, medical history, and insurer’s decision on your long term disability claim.

How Long Does Long-Term Disability Last in Canada?

The duration of LTD benefits depends on your policy terms, but many LTD policies pay for at least two years under the “own occupation” definition of disability. This means you’re unable to perform the essential duties of your own job on a routine basis.

After this two-year time period, the definition typically shifts to “any occupation”, or you must be unable to do any job that you are reasonably qualified by education, training, or experience in order to receive LTD benefits.

Some long term disability insurance policies pay benefits up to age 65, while others have a maximum benefit period or end sooner based on policy provisions.

When Will Long Term Disability Benefits End?

There are many reasons why your long term disability benefits can terminate suddenly or otherwise. It is important that you recognize these situations so that you know what to plan next.

You Are No Longer Disabled

If your insurer decides that you are no longer disabled based on medical testing, recuperation, or treating physicians’ statements, your benefits may end. Even if you are still not able to work, the firm will decide that you are no longer totally disabled according to the plan’s definitions.

Your Policy Expires

Certain policies have an expiration date or they are effective for an extremely long period, such as 5 or 10 years. After the disability coverage term expires, your benefits will terminate regardless of your health.

You Reached the Age of 65

Most LTD plans are designed to expire when you reach retirement age, usually age 65. Your LTD benefits will stop, and you may need to transition to retirement payments or other retirement income, such as CPP or Old Age Security (OAS).

When your LTD benefits lapse, either due to your having reached a specific age, recovery, or a change in policy criteria, the financial and psychological impact can be significant.

The following is what you can expect and steps you should take:

• Work Again: If you have made a full recovery, you may resume your previous work or seek new employment. If you are still unable to work, however, you may need to seek other help.
• Apply for CPP Disability Benefits: Should you remain eligible as totally disabled, you may be able to apply for Canada Pension Plan Disability (CPP-D). You should have an active contributions history and prove your disability to be severe and of long duration.

What Happens When Long Term Disability Benefits End

• Apply for CPP Disability Benefits: Should you remain eligible as totally disabled, you may be apply for Canada Pension Plan Disability (CPP-D). You should have an active contributions history and prove your disability to be severe and long term.
• Consider Legal Options: Should you believe that the insurance company unfairly canceled your benefits, you may appeal the termination through a long term disability lawyer.
• Find Other Help: Depending on your situation, you may be eligible for employment insurance, social assistance, or other community programs.

Seeking Professional Guidance from a Long Term Disability Lawyer

If your benefits are suddenly cut off and you believe that it is unfair, don’t rely on the insurer to tell you so. Insurance adjusters will often employ internal assessments, skewed physician reviews, or uneven exams to deny or close down claims.

A disability lawyer can help by:

• Reviewing your LTD policy and medical history,
• Filing a claim appeal or litigation as the case may be
• Negotiating with your insurance company
• Assisting you in obtaining other benefits like CPP disability or retirement pensions

At Grillo Law firm, we recognize how stressful and frustrating this whole process can be. Our team of experienced lawyers will work directly with you to advocate for the compensation you need.