What Is the Difference Between Long-Term Disability and Permanent Disability?

If a serious medical condition, such as an illness or injury, prevents you from performing the duties of your job for a significant period of time, you may be eligible to receive long-term disability coverage while you recover from your condition. However, in extremely unfortunate situations, some medical conditions or injuries result in permanent damage, without the possibility of recovery. Individuals who have become permanently disabled may face many challenges, including no longer being able to earn a living.

Defining Long-Term and Permanent Disabilities

According to the Financial Consumer Agency of Canada, a long-term disability may include illnesses, physical injuries, or mental conditions that prevent an individual from performing routine activities or the duties of their jobs for a significant period of time.

Generally, individuals may only be able to qualify for long-term disability benefits if their medical condition has already lasted for a substantial length of time, generally 120 days. During this elimination period, benefits claimants may be required to exhaust all other compensatory options available to them, including short-term disability benefits.

Permanent disabilities are injuries or impairments that do not improve over time. These disabilities may be physical, functional, or psychological.

In order to prove the severity and permanence of your disability, you may be required to undergo medical treatment and testing. In order for a medical condition to be considered permanent, individuals must reach a state of maximum medical recovery (MMR). According to the Workplace Safety Insurance Board (WSIB), MMR means that an individual’s medical condition no longer shows significant signs of improvement, and is unlikely to improve in the future.

Receiving Compensation for Long-Term Disabilities

In Canada, long-term disability plans typically allow eligible recipients to recover between 60-70% of their regular salaries. If you are eligible to collect long-term disability benefits, you may receive compensation through:

• Your employer’s group insurance plan
• An individual insurance policy
• The Canada Pension Plan (CPP)

If you receive benefits from a source other than your insurance provider, these benefits may be used to offset the payment amount issued to you by your insurance company. For example, if you receive CPP-D benefits, your insurance company may reduce the amount of benefits they pay to you.

Compensation for Permanent Disabilities

If you have sustained a permanent disability, you may still receive compensation through your long-term disability insurance policy and CPP.

Ending Benefits for LTD or Permanent Disabilities in Canada

Insurance providers may not allow policyholders to collect long-term disability benefits indefinitely. While receiving long-term disability benefits payments, you may be required to submit to regular medical assessments, in order to monitor your recovery process as time passes. If you recover from your disability and are able to return to work, or if you are deemed fit to perform the duties of another occupation, your insurance company may decide to terminate your benefits payments.

Contact Preszler Injury Lawyers Today

Any physical or mental condition that prohibits you from earning a living may be considered a long-term disability and may entitle you to receive benefits payments. If you are unsure if your medical condition entitles you to receive long-term disability benefits, Preszler Injury Lawyers may be able to provide useful assistance and advice. For a free, initial consultation, call Preszler Injury Lawyers Today at 1-800-JUSTICE.