What is Disability Insurance?

Wikipedia defines Disability Insurance or disability income insurance as a form of insurance that insures the beneficiary's earned income against the risk that a disability will make working uncomfortable, painful, or impossible. It is made up of paid sick leave, short-term and long-term disability benefits.

Disability Insurance provides recipients with a regular compensation in the event of disability. This coverage is essential for self employed individuals and people who have not yet been given disability benefits by their employers.
This article provides explanations about the Canadian Disability Insurance, its benefits and features. It also gives information about the National Benefit Authority and the Canada Pension Plan Disability Program.

What are the Benefits of Canadian Disability Insurance?

Canadian Disability Insurance guarantees protection for employees and workers who suffer serious accidents or unexpected ailments that lead to loss of income. It pays monthly benefit for those who are not capable of returning to work.
The insurance features of this General Disability Program include replacement income for those who become sick or sustain injuries. The insurance varies depending on the person’s occupation and the amount of coverage cannot be more than two-thirds of the employee’s current earnings. The paid benefits from an insurance claim are considered tax-free and the benefit period is from two years up until age 65. The coverage can continue after 65 years provided the person insured continues to go to work. Disability benefits are categorized either as short-term or weekly indemnity which normally lasts from two weeks to five months. On the other hand, the long-term insurance takes effect after the provisional term is over and ends after five years.

What is the National Benefit Authority?

The federal government of Canada grants disability tax credits, tax benefits and other grants for people with disabilities. However obtaining these benefits can be difficult and complicated. The National Benefit Authority makes it easier for them.
The Canadian government has recently added more programs for people with disabilities such as the Registered Disability Savings Plan and First-Time Home Buyers Tax Credit. If you are not sure about your eligibility for such plans, get in touch with a specialist of the Authority.

What is the Canada Pension Plan Disability Program?

The Canada Pension Plan Disability Program is a form of monthly assistance available to individuals who are unable to work due to a disabling condition and qualify under certain guidelines. Benefits also exist under this program for children who have one or both parents participating in the program. In order to apply for and receive disability payments, you must first determine if you qualify, then obtain and complete required application and questionnaire forms. You must also obtain a medical report about your condition.
An advisory from Human Resources and Skills Development Canada declared that Canada Pension Plan Disability provides financial assistance to CPP contributors who are unable to work because of a severe and prolonged disability. The Canada Pension Plan Disability Adjudication Framework was developed to improve the clarity and transparency of the policy used to determine medical eligibility to the Canada Pension Plan Disability program. It consolidates the policy elements of disability adjudication into one comprehensive framework.

If you qualify for all of the requirements for the CPP Disability Benefits Program, it is time to apply. Obtain the CPP Disability Application Kit from the Service Canada website. Service Canada is Canada’s governmental benefits and services agency. You can also request a package in writing at the address of the Service Canada office in your region. Once you receive the CPP Disability Application Kit, complete the forms that require information from you. These are application forms for you and your dependent children; questionnaire about your work history and medical condition which includes relevant medical records, names of physicians, and employment information at hand; consent form to give Service Canada permission to get additional information for the application process; and, form to complete if you reduced your working hours or stopped working to care for your children under the age of seven. You may be entitled to additional benefits if you meet these conditions.

Options of Disabled Beneficiaries

A person with an insurance policy, who is disabled, has three options. He can have his own occupation and earn and also get paid by the government for his disability. This is the best option as he gets two sources of income. The second type is when a person is disabled in Canada and cannot perform his regular job then he gets monthly allowances from the government. The third is if the disabled person is unable to do any kind of job in Canada. He is totally disabled and cannot do any form of work at all then he still gets a monthly allowance from the Canadian government which should be sufficient for himself and his family.


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