While common in many group insurance plans, most people will opt for longer or more coverage and purchase a private plan. Disability Insurance is designed to provide replacement income for a person who becomes disabled long enough to allow this person to recover and return to normal work activity. If the person is severely disabled, disability insurance will provide income during the insured’s shortened lifetime.

The benefit periods can vary widely from as little as six months to a year or in severely disabled cases until the person reaches age 65. The type of disability, the length of recovery time, and the length of time the insured is unable to return to work determines if the individual is deemed for Short Term Disability Benefits (STD) or Long term Disability Benefits (LTD). In many cases the benefits received may be a blend of payments from private insurer plans and government sponsored plans.

For additional information go to Service Canada.