The insurance provides for income replacement of $50,000 per annum, payable monthly, after 105 calendar days of illness or injury. The benefit payments are subject to approval by the insurance carrier after review of medical evidence and treatment plans for the illness or injury. Many members have additional disability insurance from the OMA or a practice plan. If a benefit is also payable under another plan, the benefit from the Western insurance plan will not be offset by the other group insurance payment or payments from Canada Pension Plan.
For the purposes of the above noted disability insurance it is deemed to be employer paid regardless if your department bills you the premium cost.
This disability insurance coverage will cease when a member retires, terminates or attains their Normal Retirement Date which is the July 1st following their 65th birthday.
You need to consider what other sources of income your family has access to and also the level of expenditures for your family each month. Here is a Disability Insurance worksheet designed by the Life and Health Insurance Foundation for Education.
Disability insurance (from Western) provides taxable benefits for as long as your injury or illness keeps you from the workforce. After 24 months of benefits an assessment will be made as to whether you are capable of earning income from any occupation if you cannot earn income from your own occupation. You will likely need disability insurance from other providers in order to meaningfully replace a physician’s income during an illness or injury. Under current Canadian tax laws, when you buy individual or group disability insurance and pay the premiums yourself, the benefits are tax free.