Canada’s Original Mid-Term Disability®
By changing one letter, we’re saving clients 10 – 15% on the cost of disability… permanently. Canada’s Original Mid-Term Disability® is another example of what’s possible when you don’t just accept the status quo.
Disability insurance provides protection when Plan Members are prevented from working and paying expenses due to a disability. Traditionally, there have been two types of disability insurance – Short-term Disability (STD) and Long-term Disability (LTD). We’ve never been too ‘traditional’ so now, thanks to GroupHEALTH’s innovative thinking and persistence, there is a third option – Canada’s Original Mid-term Disability® (MTD).
A traditional LTD reserve can be expensive – it’s 40% of the benefit cost! The remaining 60% goes toward claims (40%) and expenses (20%). Traditional LTD also requires your organization to set-up extensive reserves, typically 50 months on average, at the inception of LTD Own Occupation, even though less than 30% of claims make it past the LTD Any Occupation period.
Our development of MTD was a direct result of customer needs in a specific industry with particularly high long-term disability costs. The savings generated were well into six figures. Working closely with our insurer partners, we found a solution that was sitting there all along. It simply required someone to ask “why can’t we do it differently?”