Ontario Group Disability Insurance
With group disability insurance, employees continue to receive income if a serious illness or injury keeps them from working -providing financial relief and peace of mind for themselves and their families.
The importance of Ontario group disability insurance
Serious illness or injury can disrupt an employee’s ability to work – and with it, their source of income. Statistics show that for Canadians under age 35, the likelihood of experiencing a disability is greater than the risk of death. After age 35, the ratio is approximately two disabilities for every three deaths.
This reality highlights the importance of having a group disability insurance plan in place.
Why group disability coverage matters for Ontario employers and their employees
When an employee is unable to work due to illness or injury, their financial responsibilities don’t stop. Mortgage payments, rent, utilities, and other expenses continue to add up. While Employment Insurance (EI) may provide some relief, it only offers up to 15 weeks of coverage following a two-week waiting period – leaving a significant gap in income protection.
Group disability insurance helps close this gap by ensuring employees continue to receive income replacement for the duration of their disability, as long as they meet the policy’s medical requirements.
How group disability insurance works in Ontario
To qualify for benefits, employees must:
- Be under the care of a licensed physician.
- Have a disability that prevents them from performing the main duties of their current occupation.
After two years of disability payments, coverage shifts: the disability must prevent the employee from performing any occupation for which they are reasonably suited by training, education, or experience.
Payments continue until the employee recovers or reaches age 65 – whichever comes first.
The differences between short-term and long-term disability insurance
Group disability coverage is generally available in two formats – short-term disability (STD) and long-term disability (LTD). Each plays a different role in protecting employees.
Short-Term Disability (STD)
- Provides income replacement for temporary disabilities, often after sick leave or EI benefits end.
- Typical coverage lasts from 15 weeks up to 6 months, depending on the plan design.
- Helps employees recover from conditions such as surgery, broken bones, or short-term illnesses.
Long-Term Disability (LTD)
- Designed for more serious or prolonged illnesses and injuries.
- Benefits usually begin after STD or EI benefits run out (the “elimination period”).
- Coverage can last two years, five years, or until age 65, depending on the policy.
- Initially, LTD benefits are paid if the employee cannot perform their own occupation. After two years, eligibility requires that the employee be unable to work in any occupation for which they are reasonably qualified by training, education, or experience.
Together, STD and LTD coverage create a safety net that supports employees through both temporary setbacks and life-altering health challenges.
Supporting your Ontario workforce
Providing group disability insurance demonstrates a strong commitment to employee well-being. It offers peace of mind, financial security, and the assurance that employees can focus on recovery rather than financial hardship.
With Acera Insurance, our Ontario group benefits specialists will help you design a plan that balances cost-efficiency with comprehensive protection – ensuring your employees feel supported during life’s most difficult challenges.
Tax and cost advantages for employers and employees
Group disability insurance plans can be structured in ways that benefit both your business and your employees:
- Employer-paid premiums: Fully deductible as a business expense and is not a taxable benefit to your employees.
- Employee-paid premiums (via payroll deduction): While employees pay the premium and applicable taxes, any disability benefit they receive is considered non-taxable by Revenue Canada.
This flexibility allows businesses to tailor the funding model to their organizational goals while maximizing employee protection.
Why partner with Acera Benefits
At Acera Insurance, we recognize the responsibility employers carry in protecting their teams – especially when unexpected health challenges disrupt an employee’s ability to work. As an independent, employee-owned brokerage, we collaborate with a wide range of top insurance providers to design group disability plans that align with your organization’s goals and budget.
Our benefits advisors take the time to explain plan details in clear, simple terms, provide ongoing support, and act as your advocate when it matters most. We believe benefits should be about people first. That means creating programs that help employers show their commitment to staff while ensuring employees feel financially secure during recovery.
A disability can affect every aspect of an employee’s life. With the right group disability plan in place, your team members can focus on healing – knowing they and their families are supported with reliable income protection.
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