Long-term disability insurance, or LTD, replaces some of your income when you cannot work for an extended period because of a medical condition. In Nova Scotia, insurers decide what conditions are covered. Long-term disability benefits typically start after short-term benefits end, such as EI Sickness Benefits.
You may be able to receive long-term disability benefits alongside workers’ compensation (WCB) and CPP Disability, depending on the terms of your policy. We can help you apply for benefits or file a legal claim if your benefits are denied. Contact us today for a free, risk-free assessment.
What Medical Conditions Does Long-Term Disability Cover in Nova Scotia?
Most policies cover physical injuries, some mental health conditions, and certain chronic conditions, but it is up to the insurer to determine which conditions are covered. Your policy will usually cover some physical injuries, mental health conditions, and chronic conditions.
Physical Injuries
Physical injuries typically covered by LTD insurance include the following:
- Spinal cord injuries that cause paralysis or loss of function
- Traumatic brain injuries with cognitive, neurological, or psychological effects
- Severe and widespread burns
- Amputations
- Fractures that fail to heal properly
- Joint injuries that cause chronic pain or loss of function
- Organ damage that causes a loss of function or requires chronic medical care
- Repetitive strain injuries, such as carpal tunnel syndrome
- Injuries to the heart or vascular system caused by a heart attack or stroke
If you were injured at work, your long-term disability policy will likely require you to file a WCB claim. Any benefits you receive through WCB usually reduce your long-term disability payouts.
Mental Health Conditions
Disabilities caused by mental health conditions are often hidden, but very real. Unfortunately, some LTD policies limit coverage for these conditions, which can make an already difficult situation feel even harder.
You will need evidence showing how the condition prevents you from performing your job duties. Even if you are receiving conventional medical treatment, insurers may still require detailed documentation before approving benefits.
Depending on the terms of your policy, the following conditions may be covered:
- Post-traumatic stress disorder
- Generalized anxiety disorder
- Panic disorder
- Obsessive-compulsive disorder
- Major depressive disorder
- Bipolar disorder
- Schizophrenia
- Borderline personality disorder
- Eating disorders
- Attention-deficit hyperactivity disorder
- Autism spectrum disorder
Coverage may not be available for pre-existing mental health conditions, so it is important to be familiar with your policy.
Chronic Conditions
Chronic conditions are health conditions that require ongoing management and usually cannot be cured. These conditions may qualify for LTD benefits if you can show that you’ve followed medical advice and made every reasonable attempt to manage your health.
Examples of chronic conditions commonly covered by LTD insurance include:
- Multiple sclerosis
- Muscular dystrophy
- Rheumatoid arthritis
- Osteoarthritis
- Osteoporosis
- Fibromyalgia
- Chronic fatigue syndrome
- Heart disease
- Parkinson’s disease
- Alzheimer’s disease
- Diabetes with complications, such as neuropathy or retinopathy
- Kidney disease
- Inflammatory bowel disease
- Blindness
- Hearing impairment
- Terminal illnesses, such as cancer
Dealing with a long-term disability can be overwhelming. We’re here to fight for your rights and help you get the compensation you need to support your future.
How Much Income Does Long-Term Disability Insurance Pay in Nova Scotia?
Long-term disability insurance typically pays 60% to 70% of your lost income. Your long-term disability insurer may require you to apply for CPP Disability or WCB benefits as a condition of receiving coverage. Any amount you receive from other programs may reduce your LTD benefits, meaning the combined benefits will be equal to your full LTD benefit.
Suppose you earn $3,000 per month, and your LTD policy covers 70% of your lost wages. Your full LTD benefit would be calculated as follows:
$3,000 X 70% = $2,100 (LTD benefits)
Now, suppose you qualify for CPP Disability, and your monthly benefit is $1,000. Your LTD payment would be reduced accordingly:
$2,100 – $1,000 = $1,100 (Reduced LTD benefit)
In this scenario, you would still receive 70% of your income, or $2,100, but $1,100 of it would come from your long-term disability, and $1,000 would come from CPP.
How Long Is the Waiting Period for Long-Term Disability Benefits in Nova Scotia, Canada?
There is no federal or provincial regulation setting a standard waiting period on LTD benefits. Most waiting periods range from 90 to 120 days, but can be as short as 30 days or as long as 180 days. Your policy will tell you how long the waiting period is. Your insurance provider will likely call it an “elimination period.”
Short-term disability benefits can cover you during the waiting period, and you are generally required to use these before your long-term disability benefits can start. This includes sick leave, EI sickness benefits, and employer-provided short-term disability insurance.
How Long Can I Receive Long-Term Disability Benefits?
Long-term disability benefits in Nova Scotia typically last until one of the following events occurs:
- You return to your previous work or an equivalent job
- You become ineligible because you stop meeting the definition of disability
- You turn 65
Every policy is different, so you must review your policy to determine when your coverage ends. Some insurers pay benefits for partial disability, so you could still receive some benefits if you can only do work that pays less than your previous work. Not understanding your policy can cause you to lose benefits when you depend on them.
If this happens to you, call our long-term disability lawyers in Halifax at (844) 943-2532 as soon as possible. We may be able to get your benefits reinstated.
What’s The Difference Between Private And Employer-Provided Long-Term Disability Coverage?
Employer-provided long-term disability insurance is usually group insurance, with lower premiums. You can purchase an individual policy, but you will need to apply and get approved for LTD coverage.
Group insurance works well for most people, but an individual policy may be better-suited for some people. The table below shows the most common differences between individual and group coverage:
| Feature | Private LTD | Employer-Provided LTD |
|---|---|---|
| Cost | You pay the entire cost with no group discount | Split between you and the employer, potentially with a group discount |
| Portability | Your coverage follows you, regardless of employment | You lose coverage when your employment ends |
| Coverage | You control the coverage | Your employer controls the coverage |
| Waiting period | You can choose | Chosen by the employer |
| Taxation | Not taxable if premiums are paid with after-tax dollars | Taxable if the employer paid any portion of the premiums |
| Flexibility | You can customize your plan’s features based on your needs | No customization – plan is the same for all members |
| Cancellation | Policy can only be cancelled by your choice or if the insurance company meets any cancellation conditions in the contract | Ending your employment usually cancels the policy |
What Conditions Are Excluded From Long-Term Disability Insurance In Nova Scotia?
Most LTD policies have exclusions, or medical conditions or circumstances that are not covered under the plan. Common examples include:
- Disabilities caused by war
- Normal pregnancy or childbirth
- Self-inflicted injuries
- Injuries caused by substance use
- Injuries from flying as aircraft crew
- Injuries from motor vehicle racing or paid sporting events
- Fibromyalgia
- Chronic fatigue syndrome
- Mental health disorders
- Degenerative disc disease
- Strains or sprains
- Pre-existing conditions
These exclusions can feel discouraging, but they don’t necessarily mean you have no options. Even if your LTD policy excludes a condition, you may still qualify for support through CPP Disability, workers’ compensation, or other programs.
At Valent Legal, we help clients explore every available path to secure the benefits they need.
Does Long-Term Disability Cover Self-Employed Nova Scotians?
Yes, you can purchase long-term disability insurance if you are self-employed. The Chamber of Commerce and many private associations offer group insurance to self-employed people.
Disability insurance may cover your lost income, overhead costs, interest on bank loans, and deferred income taxes.
Does Long-Term Disability Cover Part-Time Workers?
You may be able to receive long-term disability coverage if you work part-time, depending on what your employer offers. If your employer participates in a group long-term disability plan, they must offer coverage to all employees who work 28 hours a week or more.
Get Help with Long-Term Disability Claims from Valent Legal
At Valent Legal, trusted legal experience meets compassionate care. We can review your coverage, answer your questions about LTD benefits, and help you file a legal claim if your benefits are unfairly denied.
Whether you need to apply for the first time or appeal a decision to deny or stop benefits, you can trust us to overcome unfair insurance tactics and get you a resolution as speedily as possible. Contact us online or call (902) 443-4488 today for a free, no-risk case assessment.