When you’re dealing with a debilitating injury or illness, your life can be significantly affected. When it comes to your employment and income, the consequences of a disability can be devastating. Disabilities are prevalent within Ontario’s workforce–over 20% of workers aged between 15-24 today will experience a disabling condition at some point before they retire. The effects of disabilities are wide-reaching because they can show up in many different ways, including:
- Mental health conditions
- Physical conditions
- Pregnancy complications
- Cancer and other complicated illnesses
- And more
The good news is that disability insurance exists to provide financial support to those who are unable to work due to an injury, illness, or disability. Depending on the type/duration of the disability you are experiencing, your support options may differ. This is where short-term disability (STD) benefits and long-term disability (LTD) benefits come into play. Although each type of disability insurance acts as an essential safety net for incapacitated workers, understanding the differences between them is important to secure the benefits you’re entitled to.
Seeing as policies vary by provider and insurance type, staying informed about your insurance plan is important when you intend to seek benefits. At Goodman Elbassiouni LLP, our Toronto disability insurance lawyers help clients identify the type of coverage they’re eligible for, and help them pursue compensation accordingly. Whether you are looking into short-term or long-term disability insurance, our legal team can assist. To discuss your legal options, schedule a consultation with our lawyers today.
What is Short-Term Disability (STD)?
Short-term disability (STD) insurance is intended for individuals who are temporarily unable to work due to illness or injury. Typically, STD benefits will last for 3 to 6 months. Examples of common conditions covered by STD insurance include:
- Recovery from surgery or acute illnesses
- Autoimmune flareups
- Pregnancy or childbirth complications
- Mental health conditions, like anxiety or depression
- Cancer requiring short-term treatment
- And more
STD will generally pay a portion of your income while you are unable to work. Depending on the provider and your specific policy, this may be anywhere from 60-85% of your normal income received on a weekly or bi-weekly basis. The amount of time you must wait to receive STD benefits can range from 1-14 days, or potentially longer. It is important to note that STD benefits may be affected by your employer-funded sick leave and/or EI Sickness Benefits.
What is Long-Term Disability?
Long-term disability (LTD) insurance is intended for individuals who are unable to work for extended periods (often years or permanently) due to severe or chronic illness, injury, or mental health conditions. Examples of medical conditions that may be covered by LTD include:
- Progressive diseases, like multiple sclerosis (MS) or Parkinson’s
- Chronic pain or autoimmune diseases
- Chronic mental illness, such as bipolar disorder or schizophrenia
- Debilitating injuries, such as paralysis or spinal cord trauma
- Cancer requiring prolonged treatment
- And more
Typically, LTD insurance will pay 60-70% of the recipient’s income on a monthly basis, although this will vary depending on the specifics of your policy. LTD can also last for a fixed period (such as 2, 5, or 10 years) or continue until the recipient hits retirement age (65). The waiting period for LTD benefits can be anywhere from 3 to 6 months, or sometimes longer.
What’s the Difference Between Short-Term Disability and Long-Term Disability?
Several key differences exist between STD and LTD insurance. This is because each type of insurance is intended for a different kind of worker, depending on the specifics of their situation. Understanding the differences between STD and LTD can help you identify which you may be eligible for, and how to pursue the benefits you need while you’re unable to work.
Important distinctions include:
- Coverage Duration: STD and LTD last for different periods of time. While STD benefits normally provide coverage for 3-6 months, LTD can last for years at a time, sometimes up until the age of 65.
- Waiting Periods: Because STD benefits last for a shorter period, the amount of time you must wait to receive them will also be shorter (normally a few days to a few weeks). When it comes to LTD, waiting periods can be anywhere from 3-6 months. This is because eligibility for LTD often only starts once STD elapses.
- Amount of Benefits Available: Although STD commonly covers anywhere from 60-85% of the recipient’s income, it may also cover up to 100% of wages depending on the policy. Normally, LTD will only cover 60-70% of income. This is partially due to the difference in duration.
- Eligibility Requirements: In most cases, it is easier to qualify for STD benefits compared to LTD benefits. This is because STD benefits are only provided for a short duration while LTD benefits may continue for years at a time. To obtain STD benefits, you may only need to provide basic proof of your illness or injury from a doctor. To apply for LTD benefits, the process may be longer. You’ll likely need to collect ongoing medical evidence, evaluations, and more.
- Definition of “Disability”: When it comes to STD and LTD policies, insurers will outline disability criteria you must meet to qualify. This will include “Own Occupation” disabilities and “Any Occupation” disabilities. The “Own Occupation” definition is met when your injury or illness prevents you from doing your own job. This is normally the only criteria required to obtain STD. The “Any Occupation” definition is only met if you are unable to do any suitable job as a result of your disability. Normally, LTD policies will require recipients to meet the “Any Occupation” definition after receiving benefits for 2 years. This process is commonly referred to as “Change of Definition” and is unique to LTD recipients.
It is important to note that both STD and LTD applications can be denied by insurance providers for a variety of reasons. They might also be terminated early. For this reason, it’s important to work with an experienced disability lawyer when you’re seeking STD or LTD benefits. They can advocate for your legal rights and help you undertake appeals when necessary.
Applying for STD or LTD Benefits? Contact Goodman Elbassiouni LLP Today
Whether you’re applying for short-term disability or long-term disability, the process can be complicated. This is especially true if your insurance provider has denied your initial application. However, STD and LTD offer critical financial protection for those who are unable to work. As a result, it’s important that you pursue benefits when they’re needed and understand the difference between them.
At Goodman Elbassiouni LLP, our Toronto STD and LTD lawyers can help you review your policy details, navigate applications, and take action when you’re facing delays or denials. To discuss your legal options, schedule a case review with our team today.
