Disability Claims

Short-Term Disability Benefits

Short-term disability (STD) benefits in Ontario provide temporary income replacement if a medical condition, injury, or illness prevents you from working for a limited period. Unlike long-term disability, STD is meant to help bridge the gap while you recover, return to work, or transition to other benefits.

How STD Works

Short-term disability coverage typically begins after a brief waiting period, often a few days to a couple of weeks, once you are medically unable to perform your job duties. The exact “elimination period” and eligibility requirements depend on your specific insurance plan.

Coverage Sources

In Ontario, STD benefits usually come from:

  • Employer-provided group insurance plans as part of your employee benefits package

  • Private short-term disability policies you purchase yourself

If you don’t have STD coverage through your employer, you may be eligible for federal Employment Insurance (EI) sickness benefits instead, which provide financial support for up to about 15 weeks.

Income Replacement

Short-term disability benefits generally replace a portion of your regular income. The exact percentage depends on your policy but is commonly between 60% and 85% of pre-disability earnings, although some plans offer different structures or amounts.

Duration of Benefits

STD benefits are temporary and usually last for a defined period set by the insurance policy; often several weeks up to about six months (commonly around 15–26 weeks). If your disability continues beyond the end of your STD period and you have long-term disability (LTD) coverage, you may be able to transition to LTD benefits.

Eligibility Requirements

Eligibility for STD benefits depend on your coverage plan. Most plans require:

  • That you are currently employed and covered under the plan

  • Medical documentation confirming you cannot perform your job

  • Satisfaction of any waiting period specified in your policy

Because Ontario employers aren’t legally required to provide STD, not all employees have access to these benefits.

Taxes and Other Considerations

Like other disability benefits, whether STD payments are taxable depends on how your insurance premiums were paid. If you paid the premiums yourself, benefits may be tax-free; if your employer paid the premiums, benefits are typically taxable.

Long-Term Disability Benefits

Long-term disability (LTD) benefits in Ontario provide financial support when a serious illness or injury prevents you from working for an extended period. These benefits are designed to replace a portion of your income so you can meet essential living expenses while you focus on recovery or adjust to long-term limitations.

How LTD Works

LTD usually begins after short-term disability benefits end or after a waiting period set out in your insurance policy (often 90–180 days). It applies if a medical condition stops you from working in your regular occupation and, in some cases, any job you’re reasonably suited for based on your experience and education.

Who Provides LTD Benefits

In Ontario, LTD coverage most often comes from:

  • Employer-provided group benefit plans

  • Individual private insurance policies

These plans vary in terms, definitions, benefit amounts, and how long benefits last.

Income Replacement

Most LTD policies replace approximately 60–70% of your pre-disability income, though specific percentages and maximum monthly limits depend on your policy. Benefits may be reduced if you receive other income (like Canada Pension Plan disability).

Duration of Benefits

LTD coverage can continue for several years and, in many cases, up to age 65 if you remain disabled according to your policy’s definition. However, insurers may reassess your ability to work over time.

Eligibility Requirements

To qualify for LTD benefits, you must provide medical evidence showing a disabling condition that prevents you from working. Most plans define disability differently; initially focusing on your own job and later possibly broadening to any suitable occupation.

Taxes and Other Considerations

Whether LTD benefits are taxable depends on how your premiums are paid. If your employer pays all or part of the premiums, benefits are usually taxable; if you pay the premiums yourself, benefits may be tax-free.