It is estimated that roughly 22% of the Canadian population 15 years and older have one or more disabilities. As someone gets older, their risk of becoming disabled is increased significantly. As a Canadian business owner, it is pertinent to prepare for potential problems. One way to do that is by acquiring and maintaining disability insurance. However, insurance owners should understand that this type of insurance is not straightforward. Most policies will come with an elimination period. Within this guide, you’ll learn more about the insurance policy’s elimination period.
What Is The Elimination Period?
Again, the majority of disability insurance policies in Canada will come with an elimination period. It is sometimes referred to as a “waiting”, “qualifying”, or “deductible” period. The period begins when the employee is injured. It ends when the employee is eligible to receive disability benefits. The period will range depending on whether you’re working with short-term or long-term claims. With a short-term claim, the period will be much shorter. It may last less than a day or a week or longer.
Long-term claims have a much longer elimination period. With a long-term claim, you can expect the elimination period to last 90 days. Depending on the policy though, it may be longer or shorter. If you’re receiving short-term benefits from the same insurer, the long-term elimination period will likely be the same length of time that the employee is sick or short-term benefits run.
Just remember that the duration can vary from one plan to another. Before your short-term period expires, you’ll want to go ahead and file a claim for long-term benefits. This will ensure that you do not have to wait for benefits after the short-term benefits end.
Don’t Wait To File
Waiting to file will prove to be a very bad idea. If you wait too long, there is a chance that you’re going to miss receiving payments when you need them the most. With this in mind, it is pertinent to file a claim as soon as you become disabled. If your doctor believes the recovery time could be longer than the elimination period, you should file a claim. If you aren’t sure how long it is going to take for you to recover and return to work, you should file a claim.
Remember that you can file a claim before the elimination period ends. It is best to file a claim before the elimination period ends. Unfortunately, it is not guaranteed that you’re going to receive benefits after the elimination period. The insurer may find a reason to deny your request. With that being said, you should submit all applications early so you can be ready for anything.
Reasons You’ll Be Denied
Since you never know if your insurance company is going to grant your request, you should apply early. Furthermore, you should understand the potential reasons why your insurance company may deny your claim. One of the main reasons they’ll deny your claim is a change in the definition of disability. Or, the insurer may believe that your case does not meet the definition.
Other reasons include insufficient medical information, failure to receive medical care, misrepresentation on the application, non-compliance with treatment, pre-existing medical conditions, or surveillance. If you receive a denial letter, you should not stop. You always have the option of appealing. Appealing their decision may feel like an uphill battle but you can help. You should file a claim and provide the insurer with new medical information.
Make sure that you’re truthful on the claim and provide the latest information about your disability. With a little luck, you’ll be able to convince the company to grant your request.