Important points to know:
- Disability insurance acts as a wage loss replacement plan and can be administered as a
taxable or non-taxable benefit (depending on whether the employee or employer pay the
- There is often a qualifying period in order to access these benefits, this period must be
satisfied before benefits begin to be payable to the employee.
- The definition of determining disability in a group benefits contract are based on either the
individuals ability to perform his/her job, or any job.
- The benefit (if the employee is totally disabled) normally ends at age 65 or retirement,
whichever comes earlier.
- The monthly benefit is calculated as a percentage of the employee’s pre-disability salary.