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Long Term Disability Insurance
RCC's Long Term Disability (LTD) program provides protection against an extended loss of income due to injury or illness. This benefit is designed to integrate with RCC's Short Term Disability program, Employment Insurance Benefits, or, temporary salary continuance that you provide to your employees if they are disabled or sick.
The taxability of any LTD benefit received by a disabled employee is determined by whomever initially paid the premiums for the coverage. If the employee pays 100% of the premium, then any eventual benefit payment will not be taxable to the employee if the employee is disabled. If the employer pays any potion of the LTD premium then any benefit received is taxable.
Benefit payments most commonly commence after 17 weeks of disability.
Features of the Long Term Disability program include:
- Benefits continue until age 65 or earlier recovery
- Benefit amounts is 66.7% of the employee’s pre-disability monthly income
- Coverage is available up to a monthly maximum benefit of $3,000
- Employees must be medically approved by the insurer
- Worker’s Compensation, no-fault auto insurance, group retirement or pension plan and primary CPP/QPP payments are direct benefit offsets
- Coverage terminates at earlier of retirement or age 65
Notes: Disability definition is commonly based on the ‘2-year own occupation’ definition. This means that the employee is disabled for his or her own occupation during the first 2 years of disability and thereafter is disabled for any occupation that is suitable by virtue of past training, education or experience. Some restrictions apply with respect to for pre-existing medical conditions
Long Term Disability Premium Rates
Premium rates for Long Term Disability Insurance are based on each employee’s salary and age. Please contact Morneau Sobeco to obtain rates for your group.
If you have any further questions, please 
contact us; we'll be glad to help you.
This information is not intended for use without professional advice. While we have attempted to make this site as accurate as possible, it is only a summary. For more information, see our disclaimer.