Studies suggest one-in-six Canadians will suffer a disability that lasts three months or more before the age of 60. More than 53,000 Canadians are approved for Long Term Disability benefits annually. Chronic medical conditions, musculoskeletal, connective tissue, back, neck, and injuries account for a significant number (+43%) of these on-going claims.

We say it a lot … for a reason. 

Disability insurance is an integral part of any long-term financial plan, no matter your age. A disability can be more financially devastating than death as it can take away your ability to earn your regular income, while your monthly expenses remain the same – or even increase. 

Many benefit plans include disability coverage for employees, both for short term and long-term claims. This is the protection of the employee’s income ability when they can’t work.

The FINANCIAL gap between the non-evidence maximum and the overall maximum

What is often overlooked until there is a need, is the financial claim gap between the non-evidence maximum and the overall maximum according to the staff members salary. Most benefit policies are set with both a maximum allowable amount and non-evidence, which is the amount the insurer will provide coverage WITHOUT providing medical evidence. On many policies the claim difference may be many thousands of dollars if the overall maximum is listed at $10,000 a month (should the employee’s salary qualify) and non-evidence maximum of $2,500 monthly. 

Can the employee support themselves, their family, maintain a lifestyle on a fraction of the income they were earning prior to the disability. Consider the added emotional stress of this situation ON TOP OF the disability itself.

Because many employers don’t remind their staff to complete the medical questionnaire on an on-going active basis, too many employees do not bother to complete the medical questionnaire necessary to achieve the overall maximum. Usually, the decision not to complete underwriting is because they don’t want to pay the higher premium. Bluntly, this means the monthly maximum may fall substantially short of their needs.

Medical Questionnaires BEFORE you need it and here’s why…

The reality is, very few employees ever purchase disability that is not attached to a mortgage or a loan and many don’t complete the underwriting process due to not wanting to pay the additional premium. Being approved for the additional disability before there is a known health risk is critical.

I hope by sharing this very personal e-mail that it may assist to stress the importance of COVERAGE that matches their salary for the employees need it most. 

“I know that XXX reached out on my behalf trying to find out about an increase for LTD with a pre-existing condition. XXX shared that it is unlikely I’d get approved for the increase. So, I guess that option or door is closed.

Maybe I can take a different spin on this (?) as I’m trying to find a new perspective or avenue that has yet to be explored in receiving financial assistance throughout this next chapter of my health challenged chapter.

I have Primary Biliary Cholangitis (PBC) – there is no cure for this progressive Liver disease. Then the most recent is finding lumps in my thyroid area that were biopsied 2 weeks ago. They are cancerous and I’m now on a waiting list for thyroid removal. They will decide after they look at the growths after surgery what stage of cancer it is and what the action plan is. My physical wellbeing is less than wonderful for years then adding in this new thyroid issue (changed my voice and ability to swallow well), the fibromyalgia, spine deterioration, depression / anxiety (for 40yrs).

I need help. I’ve been strong, filled with courage, always smiling, and plugging along but now my sick days and me falling asleep due to debilitating fatigue is out of my control. My once pay cheques are now half because I can’t make it through a day. With having this rare liver disease (PBC) that has affected me the most – is it possible to qualify for more?

I feel as though I’m so lost. I just know that stressing about finances while going through all of this is an awful feeling and if I can use my energy now to sort this out then I’d like to. I am just in need of clarity, direction, guidance.”

This is where comprehensive, consistent communication is an essential component of what we do. Let’s engage in a meaningful conversation. Give us a call. 

Note: this was written without the aid of Artificial Intelligence (AI)

Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.