Long Term Disability (LTD): A Few Common FAQ’s

In the last 25 years, our experienced attorneys have advised thousands of individuals throughout Canada to appeal for LTD compensation. Your Long-Term Disability (LTD) benefits you equivalent to 70 percent of your monthly income when you cannot work due to disease or accident after the first 150 calendar days of your disability. Nova Scotia | Wagners Law firm would assist you to secure the advantages. Below are responses to customer concerns about the approval of LTDs:

Who is eligible for LTD compensation?

  • You can be eligible if you are a permanent employee who has been working at least 28 hours every two weeks permanently, or
  • You are a part-time but a permanent employee who works on average 28 hours or more every two weeks over the course of the year. But you need to complete 12 months of continuous service on the first day of February in the year following the year.

When the LTD coverage become effective?

  • If you are a regular employee who has been hired to work at least 28 hours every two weeks, the coverage is available after three months. Thus, if you are hired on 13 May, it will take effect on 13 August.
  • When you are a new part-time employee, hired to work less than 28 hours per week but work on an average for 12 consecutive months, at least 28 hours a week, your coverage will take effect on the first day of February of the following year.

For how long the LTD plan covers me?

You are covered until:

  • you are laid-off,
  • you retire,
  • your employment terminates,
  • you die,
  • you have 30 years of pensionable service in Nova Scotia Health Employees’ Pension Plan and you reached your 60’s
  • you have reached your 65’s and you have less than 150 consecutive day elimination period

How much of a monthly benefit could I obtain?

You can get a monthly benefit equal to 70% of your monthly wages at the time of your disability. Moreover, the maximum benefits do not exceed $20,000. You have to show proof of good health which must be approved by the insurer for amounts over $15,000.

Is it considered taxable income?

Yes. As the employer pays a part of the premium for a long-term disability, the benefits paid by the Canada Revenue Agency are called taxable income.