Canadian statistics show that the chance of serious disability is significantly higher than death for persons up to and including the age of 35.  Following 35, the rate becomes two serious disabilities for every three deaths.

Throughout any disability, the need for revenue continues. Where will this money come from? Unemployment Insurance will help for a fifteen week period (following a two week waiting period).  What will your employees do following this time?  Is Unemployment Insurance sufficient?

To receive disability income an employee must be under the care of a licensed physician.  The disability must prevent the employee from performing the substantial duties of his/her occupation.  After two years of disability income payments, the disability must prevent the employee for performing any work for which he/she is fit or becomes fit for by education, training or experience.  Disability payments cease on the employee's 65th birthday or recovery, whichever comes first.

This program is fully deductible as a business expense and is not a taxable benefit to your employees.  You can, however, set the plan up so the employees pay the disability premiums and applicable sales taxes through pay-roll deduction, causing any potential disability income to be considered non-taxable by Revenue Canada.