Long Term Disability Insurance
If you are absent from work due to a non-work-related injury or illness you may be eligible for Long Term Disability benefits, as long as you meet the disabled
- During the elimination period and/or the next 24 months, you are considered disabled if you are unable to perform the essential functions of your own regular job.
- Thereafter, you are considered disabled if you are unable to perform any reasonably commensurate occupation for which you are qualified by training, education or experience.
If you do not meet the definition of disability after the elimination period and the subsequent 24 months, your benefits end, unless you participate in a rehabilitation plan.
You must be under the active care of a physician and follow a course of treatment satisfactory to Sun Life Financial.
Once your claim is approved by Sun Life Financial, you receive 70% of your adjusted insurable earnings as long as you remain disabled. This amount is reduced by amounts you receive for the same or a subsequent disability from or under:
the Public Service Superannuation Act (PSSA) or NAV CANADA Pension Plan,
the Canada/Quebec Pension Plan (C/QPP), excluding benefits payable to, or on behalf of, your dependents because of your disability,
workers’ compensation or similar government legislation,
another group insurance plan or policy you have because of membership in an employee union or association,
any government legislation, for example, automobile insurance income replacement benefits,
disability benefits, or retirement benefits related to any employment, payable after your disability period begins,
compensation or profit for any occupation or business enterprises in which you are actively engaged, and
under the Criminal Injuries Compensation Act, or similar law, where allowed by law.
If you are eligible for benefits from another source, you must apply for them.
Benefits are not reduced by:
government or pension plan benefit cost-of-living increases,
disability benefits payable to or on behalf of your dependent,
return of pension contributions when not entitled to a pension,
benefits from retirement plans to which NAV CANADA has not contributed,
benefits under a private, personal insurance policy, or a policy you have because of membership in a professional association not restricted to NAV CANADA,
early departure/retirement incentives,
rehabilitation to a maximum of 100% of monthly earnings when combined with long-term disability benefits and other offset,
disability payments from a life insurance, or
disability benefits to a veteran under the Pension Act, and any subsequent increases.
|Adjusted Insurable Earnings
|Gross Annual Long Term Disability Benefits
||$68,000 x 70% = $47,600|
|Gross Monthly Long Term Disability Benefits
||$47,600 / 12 = $3,966,67|
|Income from other sources
| NAV CANADA Pension Plan
| Canada pension Plan
|Total Income from Other Sources
|Monthly Net Disability Payment from the Long Term Disability Insurance Plan
||$3,966.67 - $1,833.32 = $2,133.35|
Benefits from the Long Term Disability Insurance Plan are taxable. Sun Life Financial sends you a tax form annually, indicating the benefits paid to you the previous year.
Your monthly Long Term Disability Insurance Plan premiums are not tax-deductible.
Once you are receiving plan benefits however, the total premiums you paid during your employment, if applicable, are tax-deductible. You can carry the deduction over from year to year until deducted in full. Consult your local tax centre for more information, and your Pay and Benefits Advisor for total premiums you paid.
Read what exclusions apply to this coverage.