Understanding Disability Protection
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).
When long-term disability is set up employers are required to put aside a reserve – and it’s 40% of the benefit cost! Even if the claim never becomes “long term”, this reserve remains.
Based on powerful data and actual claims experience, Canada’s Original “mid-term” disability (known as “MTD) coverage leverages a simple fact: less than 30% of claims make it to true long-term disability length. By introducing MTD benefit , GroupHEALTH can reduce costs by up to 15%.