How is long-term disability insurance different from WSIB benefits in Toronto?

When it comes to benefits related to disability and workplace injuries, there is often some confusion between Long-Term Disability (LTD) benefits and Workplace Safety and Insurance Board (WSIB) benefits.

LTD benefits are insurance payments provided for individuals unable to work due to non-workplace-related illnesses or injuries and are typically included in employee group benefits plans or purchased privately. On the other hand, WSIB benefits are compensation programs administered in Ontario for workers injured or made ill due to workplace-related incidents, offering support without requiring proof of fault.

What’s the key difference between LTD and WSIB benefits?

• Cause of Disability: LTD benefits cover disabilities that are not necessarily work-related, such as chronic illnesses or injuries from daily activities. WSIB benefits, on the other hand, apply strictly to injuries or illnesses directly related to the workplace.
• Funding Source: LTD benefits are provided by private insurance companies, typically funded by employer-paid premiums or an individual's personal coverage. WSIB benefits are funded through employer premiums to WSIB.

There may be cases where an individual is eligible for both LTD benefits and WSIB benefits. However, most LTD policies have provisions requiring the individual to disclose and coordinate WSIB benefits. LTD benefits will often top up the income amount not covered by WSIB, up to the limits of the LTD policy.

WSIB benefits often impact LTD entitlements. Many LTD policies include "offset" clauses, meaning the amount received from WSIB will be deducted from LTD payments to avoid overpayment.

Understanding the differences between LTD and WSIB benefits ensures you can pursue the appropriate support during challenging times. If you have specific questions, reach out to your insurance provider, employer, or WSIB to clarify your options.