How Voluntary Disability Insurance Works

On June 7, 2012, in Canada, Montreal, by Jason Hall

Sun Life building in MontrealLast week, it was announced that  the Sun Life Assurance Company of Canada, one of Canada’s most prominent financial institutions, has introduced a “flexible set of voluntary group disability insurance options”, including Voluntary Short Term Disability (VSTD) and Voluntary Long Term Disability (VLTD) for workers.

This development is aimed primarily at US workers (Sun Life has been an international heavy weight in the insurance industry for over a century), where a vast proportion of personal bankruptcies are directly related to disabilities and their attendant medical costs. The voluntary part comes into play as Sun Life has enabled options so that employees can select the following:

  • Either a dollar amount, or a percentage of salary to replace a portion of income in case of disability,
  • An elimination period, which defines how soon a claimant would receive a benefit after the start of disability,
  • One of several options for the duration of the benefit, which determines how long the benefit would pay for a qualifying disability.
  • This also applies to an elimination period, which defines how soon a claimant would receive a benefit after the start of disability.

Michael Shunney, Sun Life’s US senior vice president  and general manager for its employee benefits group division, noted that that many workers don’t protect themselves against the risk of long-term disability even when they have the chance to purchase group coverage.

Comments are closed.

TheyPay