See how short-term and long-term group disability coverage hand off, where the non-evidence maximum and 85% group offset bite, and how an individual policy fills the gap.
The worker
Short-term (STD) · weekly indemnity
Long-term (LTD) · monthly benefit
Other income sources
Monthly benefit by phase.
How this works. Group disability splits in two: short-term (STD),
a weekly-indemnity benefit of roughly 70–75% of taxable income lasting 10–26 weeks, then
long-term (LTD) that takes over at 50–66⅔% until 2/5/10 years or age 65.
Everyone gets the non-evidence maximum with no medical questions; coverage above it must be
underwritten. A group offset amendment caps benefits from all direct sources (group + CPP-D/EI/WSIB)
at about 85% of pre-disability income; the excess offsets the group benefit. Personally-owned
individual DI is usually exempt from that offset, so it can top the total back up toward 100% and fill the gap.
Sample figures follow the manual's Myron, Chiang/Eng, Brandi and Mr. Lee illustrations; all figures are illustrative.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.