Disability

Corporate plans cover disabilities from both accident and sickness that provide benefit of long term and short term and it can be provided separately or joined seamlessly.

1.Short term and long term disability plans
A. Short term plan includes
a) The waiting period for disability benefits from an accident can be zero days, effective immediately.
b) For sickness, there tends to be about a seven day waiting period. The range can be anywhere from zero to 14 days. The benefit tends to be around 66.7% of salary to a maximum of $600 per week.
c) Some corporate plans provide benefit for people to receive only 50% of their salary and others 75%.
Since there are different payout in benefit in case of sickness, please read your contract carefully.

B) Long term plan
a) The waiting period can be 30, 60, 90 or 120 days, with no overlap with the short term plan.
b) The benefit tends to be around 66.7% of salary.
c) Maximum benefit payment per month, from $2,000 - $10,000.
d) The benefit period can range from 1, 2, 5 or 10 years to age 65.

2. Group disability plan
a) In group disability plan the premiums are deductible to the employer and the benefits received are taxable and therefore the insurer will often issue higher amounts than usually allowed under their issue and participation limits.
b) Disability definition in this type of group policy usually very restrictive .
c)they contain maximum overage limits which is not helpful for high earners.

3. Association Group plan
a) The disability association group plan coverage is generally individually underwritten. Rates can change or be canceled and if the member leaves, the coverage is terminated.
b) The coverage is usually very strict than other private and group plan.
c) The insurance benefits do not become taxable benefits when received by the employee.
d) Premium are tax deductible to the employer

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