Have you considered long term care in your retirement planning? Like many Canadians, probably not, but you might want to think again. Disability insurance is a benefit that is generally one of the most important parts of a benefits package. While some companies opt to fund a short term disability or don’t even offer one at all, many more employers do offer a long term disability program funded through a third party administrator such as a disability insurer.

A major provider of disability insurance, 3 out of every 10 workers between the ages of 25 and 65 will experience an accident or illness that keeps them out of work for 3 months or longer, with nearly 60% of these injuries occurring off the job. If an employee is hurt off the job, worker’s compensation will not cover them. When an employee cannot work for an extended period of time, a long term disability plan can help cover a portion of the employee’s salary. Long term disability usually kicks in after a short term disability policy has run out.