What do statutory life and disability benefits cover?
Your supported employees receive disability benefits through the social system via Employment Insurance (EI). They also receive survivor's pension (similar to life insurance) and long-term disability benefits through the Old Age Security (OAS) program and the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP). These amounts, however, are not robust and are taken out of the pension allowance. Given that they are not robust, it is generally common that employees will want additional long-term disability coverage via a private insurer. Please see here for more information on life and long-term disability benefits provided through the CPP and here for benefits from the QPP.
What life and disability benefits do most employers offer?
Employers commonly offer supplemental life coverage and long-term disability (LTD) benefits, even though they are not legally required to do so.
If you choose to offer supplemental life insurance, we recommend offering between CA$100,000 and two times the salary of your supported employee.
If you would like to provide LTD benefits to your supported employees, we offer a policy that kicks in after 112 days of extended illness leave. Employment Insurance (EI) covers medical leave before your supported employees are eligible for LTD benefits. Velocity Global does not offer a short-term disability plan.
Please note that this plan does not cover any time your supported employee is on maternity leave or disabled due to pregnancy. In that case, your supported employee must apply for pregnancy leave through EI or EI sickness benefits.
Velocity Global’s Canada Life medical plans include a life and disability benefit, with additional life insurance and AD&D coverage available through MSH International if you or your supported employee want it.
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