Disability Insurance

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.

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