Long term disability (LTD)
Income replacement for extended inability to work.
LTD replaces a portion of earnings when illness or injury prevents an employee working beyond the elimination period. Benefits may run for a defined term or to age 65 depending on the contract.
The definition of disability matters enormously: 'own occupation' coverage is far broader than 'any occupation', and most contracts shift from one to the other after a set period.
What this means for a BC plan
LTD is the benefit we most strongly recommend BC employers leave fully insured. A claim can run for decades and creates a reserving obligation few organizations are equipped to carry.
Related terms
Where this comes up
Disability coverage · All glossary terms · Ask an advisor directly
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