Supplemental Disability Insurance

Canadian workers should be protected at the highest level by their employer benefits. Unfortunately, this is not always the case. Even when a company offers its employees an option to get disability insurance, these plans are oftentimes lacking one way or the other. If you are covered to the fullest by a company disability policy, you can count yourself very lucky. Without hard-working employees, Canadian companies would not operate efficiently. 

How can Canadian companies protect their employees in the event of workplace injuries? What insurance options do non-covered employees have available to them? Is company disability insurance always enough? Find the answers to these questions in the article below.


Protect Your Most-Prized Assets

When only one member of a household works, everyone in the household depends on the working member’s income for everything. Many families in these types of situations do not give much thought to the inevitable, such a disabling workplace injury or fatality. Have you ever stubbed your thumb without a moment’s notice? Well, the same thing could happen to you while you are on the job. 

Workplace injuries are inevitable, whether you are a victim or one or more of your co-workers, every worker is at risk. These injuries can range from mild to moderate to severe. While a mild workplace injury generally will not require surgery, physical therapy, or time off work, it will still require medical treatment, even if it is only a stubbed thumb. You’ll never know how important your thumb is until this happens to you.

Supplemental disability insurance is ideal for employees who are covered under their employers’ insurance plans and those who work for companies that do not offer it. There are two types of disability insurance (more in-depth information provided below), short- and long-term. Both of these plans offer great benefits. But, sometimes, they do not provide enough protection for injured workers.


What Is The Duration Of Company Disability Plans?

Every disability plan offered by companies, corporations, and government entities are unique. Some tend to offer longer coverage periods than others. But, the average durability of company disability insurance coverage is three years. This generally applies to short-term disability insurance policies. Long-term disability insurance policies offer extended coverage periods between five and 10 years. Again, the coverage period for company disability plans varies from one company to another.


Why Is Supplemental Disability Insurance So Important?

Well, if you consider the length of time a company disability policy will payout, there may not be enough time to apply and qualify for retirement or Canadian disability benefits. The average coverage period for company short-term disability coverage is three years. Long-term policies will vary between five and 10 years.

With this said, the disability plans offered by Canadian-based companies are not adequate. For example, Henry cut off his finger in a meat grinder at work. He is rushed to the hospital and admitted immediately to surgery to reattach the finger. The surgeon advised Henry that it could take anywhere from two weeks to several years for his finger to heal. What is going to happen to Henry and his family?

Since Henry was one of the millions of Canadian workers covered under their employers’ disability plan, he will be covered financially at least for several years. While this is great and all, what happens if Henry is deemed disabled due to his workplace injury? If Henry is nearing retirement age, he should be able to go ahead and apply for Canadian retirement benefits. If Henry is in his 30s or 40s, he will need to apply for early disability through the federal government.

If Henry’s employee disability plan runs out while he is waiting for government officials to process his disability claim, he could be financially ruined. This is where supplemental disability insurance comes into play. This plan will pick up where Henry’s employee disability policy stops paying.

Supplemental disability coverage can also add to your existing employee disability plan. Since most company disability plans do not cover more than 60% of the injured worker’s gross income, keeping up with your monthly expenses can sometimes be too much. If you are covered under a supplement disability plan when you get injured at work, it will kick in almost instantaneously. So, the payments can be combined with your group disability payments. The combined payments will allow you to continue living a comfortable life while you remain off work.


Calculate Your Disability Coverage

 It is crucial for every Canadian worker to know the total amount of their disability coverages. If you determine your coverage is limited in any way, the agents at ProfessionalsCoverage is here to help. When you contact ProfessionalsCoverage, you are paired with a supplemental disability insurance expert who will assist you in customizing a policy specifically for your insurance needs.


Group Disability Insurance – What Is It?

Group disability insurance is offered by employer-sponsored. Each employer’s disability plan is unique, as mentioned above. Some offer shorter coverage periods than others. So, they are categorized into two classes – short- and long-term.

  • Coverage Amount – it cannot be stressed enough that employer-sponsored group disability insurance plans vary from one company to another. However, the average coverage for these plans is 50%. Rarely, do these plans cover more than 60% of the injured worker’s gross income.
  • Who Needs It – Every part- and full-time worker in Canada and beyond need to obtain disability insurance as soon as it comes available through their employers. No worker is fully protected from workplace injury risk.


Social Security Disability Insurance (SSDI) – What Is It?

In 2009, it was reported that the Canadian government transferred payments totaling $176.6 billion to qualified disabled citizens in the form of SSDI. This government-sponsored disability insurance is available to disabled workers who have sufficient work credits. To qualify, injured workers must be diagnosed with an injury or disability that is covered under SSDI.

  • Coverage Amount – SSDI pays out monthly in an amount ranging between $1,200 and $2,700. New members are required to wait five months after they are deemed qualified to receive their initial SSDI payments.
  • Who Qualifies – Every Canadian worker who has put in the required work hours and been diagnosed with a covered injury or disability is eligible to apply for SSDI. There is a waiting period for all applicants, which can vary between one and two years. As of current, only 39% of applicants are approved for SSDI.


Canada Pension Plan (CPP) Disability Insurance – What Is It?

CPP is available to injured and disabled workers who have a history of contributing to the program during their work history. To qualify, you must be under the age of 65 and contributed to CPP while you were a part- or full-time employee. All Canadian employees are required by law to contribute to CPP as long as they are working.

  • Coverage Amount – CPP pays on average 60% of the injured or disabled worker’s gross income. For example, a worker with a gross income of $75,000 per year is injured on the job. The injured worker contributed to CPP for several years, making him eligible for benefits. CPP payments for the injured worker will be $45,000 per year. 
  • Who Qualifies – Every employer who has contributed to CPP is eligible. 


Contact Us!

ProfessionalsCoverage is here to help Canadian workers determine if they carry adequate disability insurance coverage. If your policy is lacking in any way, a ProfessionalsCoverage agent can help you create a supplemental disability plan specific for needs and preferences.


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