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 
    benefit premiums).
  • 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.