Disability benefits are payments made to individuals who are unable to work due to a physical or mental disability. Benefits may include Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and other assistance programs from the federal government and state.
What are Short Term Disability Benefits?
Short term disability (STD) benefits are a form of insurance that provides wage replacement to workers who are temporarily unable to work due to a non-work-related injury or illness. These benefits typically last up to six months and are paid in the form of a percentage of an individual’s salary. They may also be used to cover any additional medical expenses incurred as a result of the disability.
Features of short term benefits:
- Flexibility: Short term benefits offer companies the flexibility to adjust their benefit plans as needed to meet their employees’ current needs while staying within the budget.
- Cost Savings: Short term benefits cost significantly less than long-term benefits. This can be a great way to save on costs while still providing employees with valuable benefits.
- Low Risk: Short term benefits are a low-risk option for employers since they aren’t tied to any long-term commitments.
- Customization: Companies can customize short term benefits to meet their employees’ needs, allowing them to provide the benefits that make the most sense for their team.
- Quick Implementation: Short term benefits can be implemented quickly, allowing companies to start providing benefits to their employees almost immediately.
What are Long Term Disability Benefits?
Long-term disability benefits are payments made to an employee if they become physically or mentally disabled and are unable to work for an extended period of time. These benefits typically provide a percentage of the employee’s salary and can last for an extended period of time, depending on the policy.
Features of long term disability benefits:
- Monthly Income: Long-term disability benefits provide a monthly income to replace a portion of the income you were earning before your disability.
- Tax-Free Benefits: Long-term disability benefits are typically tax-free, meaning you won’t owe any taxes on the money you receive.
- Medical Benefits: Long-term disability benefits usually include coverage for medical expenses related to your disability.
- Continuation of Insurance Coverage: Long-term disability benefits can provide continued coverage for health insurance, life insurance and other benefits that may have been provided by your employer.
- Job Retraining and Rehabilitation Services: Some long-term disability plans provide job retraining and rehabilitation services to help you return to work after your disability.
- Social Security Benefits: When you become disabled and are unable to work, you may be eligible to receive Social Security Disability Insurance (SSDI) benefits. Long-term disability benefits can supplement your SSDI income.
- Survivors Benefits: In the event of your death, your family may be eligible for survivors benefits from your long-term disability plan.
What Are CPP Disability Benefits?
CPP Disability benefits are a form of financial support provided to eligible individuals in Canada who are unable to work due to a long-term disability. These benefits are provided by the Canada Pension Plan (CPP) and are intended to help those with disabilities maintain their standard of living. To be eligible for CPP Disability benefits, an individual must meet specific criteria, such as being unable to work for at least one year due to a severe and prolonged disability, being under the age of 65, and having made sufficient CPP contributions.
Features of CPP disability benefits:
- Monthly Financial Assistance: CPP disability benefits provide monthly financial assistance to people who are unable to work due to a disability. The amount of benefits received is based on the level of disability and the amount of time that a person has contributed to the CPP.
- Medical and Rehabilitation Support: CPP disability benefits provide support for medical and rehabilitation services, including prescription drugs, assistive devices, and therapy.
- Child Benefits: If a person receiving CPP disability benefits has dependent children, they may be eligible for additional financial assistance.
- Survivor Benefits: CPP disability benefits may also provide survivor benefits to a surviving spouse or common-law partner of someone receiving CPP disability benefits.
- Special Benefits: There are also special benefits available for those with severe and prolonged disabilities.
- Appeal Process: If a person is denied CPP disability benefits, they can appeal the decision.
Did you know personal injury law can help you navigate these processes? We suggest getting a legal team to help you understand your disability benefits. They are seasoned in this field and can ensure you do not miss out on any government benefits. Talk out your demands with the lawyer and make sure you reach an understanding about what you want. We hope this article helped understand the basics of disability benefits.