Group Life and Disability Insurance
Protect your team from the events that matter most. We connect Ontario employers with licensed advisors who design group life, AD&D and disability coverage that fits your budget.
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Quick answer
What is group life and disability insurance?
Group life and disability insurance is employer-sponsored coverage that pays a benefit to an employee's beneficiary if the employee dies, and replaces part of their income if illness or injury keeps them off work. It usually includes group life, AD&D, and short or long term disability. A licensed advisor can design the plan around an Ontario employer's team and budget.
Group Life and Disability Insurance
Health and dental benefits get used every month, but group life and disability coverage protect employees from the events that change everything: a death in the family or an illness that keeps someone off work for months.
These coverages are the foundation of most group plans, and they are often inexpensive relative to the protection they provide. A licensed advisor can design them around your team and your budget.
Connect NowHow CommercialInsurance.ca works
We are not an insurer or an advisor. We find you the right one.
Matched by need
We connect you with an advisor who works with businesses and families like yours.
Licensed life and health advisors
Life and health insurance advisors in Ontario are licensed by the Financial Services Regulatory Authority of Ontario (FSRA).
Fast follow up
Once we receive your information, a professional in our network will connect with you within 24 hours.
No cost to be matched
Our referral service is free. You deal directly with the advisor for quotes and coverage.
What do group life and disability plans cover?
Most plans include some or all of the following.
Group life and AD&D
Pays a benefit to an employee’s beneficiary, often a flat amount or a multiple of salary. Accidental death and dismemberment pays an additional amount for accidental death or serious injury.
Employer paid group life premiums are a taxable benefit to employees.
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Short term disability
Replaces part of an employee’s income for a limited period, often up to 17 or 26 weeks. Employers with a qualifying wage loss plan may be eligible for reduced EI premiums through the federal EI premium reduction program.
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Long term disability
Replaces part of an employee’s income for a longer illness or injury, potentially to age 65. When employees pay the LTD premium themselves, benefits are generally tax free when they claim.
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Dependent life and critical illness
Optional coverages for a spouse and children, and group critical illness that pays a lump sum on diagnosis of a covered condition.
Connect NowWhich design choices affect cost and value?
A few choices shape the cost and value of the plan.
Who pays the LTD premium
Employee paid LTD makes benefits tax free when they are needed. Employer paid LTD is a tax free benefit today but taxable at claim time.
Benefit levels and maximums
Salary multiples for life coverage and benefit maximums for disability should reflect what your team actually earns.
Waiting periods
Waiting periods for STD and LTD affect cost and how they coordinate with EI and sick days.
How do group life, STD and LTD compare?
Each group coverage responds to a different event, so most plans combine several of them.
| Coverage | What triggers a benefit | How it pays | Tax on benefits |
|---|---|---|---|
| Group life | Death of the employee | Lump sum to a beneficiary | Premiums paid by employer are a taxable benefit |
| AD&D | Accidental death or serious injury | Additional lump sum | Depends on who pays and the plan |
| Short term disability | Illness or injury keeping an employee off work for a limited period | Part of weekly income | Generally taxable if employer paid |
| Long term disability | Longer illness or injury | Part of monthly income, potentially to age 65 | Generally tax free if employee paid |
Group Life and Disability FAQs
Is group life insurance a taxable benefit?
Yes. Employer paid premiums for group term life insurance are a taxable benefit to the employee.
Should employees pay for long term disability?
Many advisors recommend it, because benefits are generally tax free when the employee paid the premium. Your advisor can model the options.
Can small businesses offer disability coverage?
Yes. Most small business plans can include life, AD&D and LTD, and sometimes STD. See small business group benefits.
What is the EI premium reduction program?
A federal program that lets employers with a qualifying short term disability or wage loss plan pay reduced EI premiums.
Are Ontario employers required to offer group life or disability insurance?
No. Ontario law does not require employers to provide group life or disability coverage. Employers offer it to attract and retain staff, and employees may still have access to government programs such as EI sickness benefits.
What is the difference between short term and long term disability?
Short term disability replaces part of an employee's income for a limited period after a short waiting period. Long term disability starts after short term benefits or a longer waiting period ends, and can continue for years, potentially to age 65, depending on the policy. Many plans combine the two so coverage flows from one to the other.
What affects the cost of group life and disability insurance?
Cost typically depends on the ages and salaries of your employees, the type of work they do, the benefit levels and maximums you choose, and the waiting periods. Who pays the premium also matters for tax treatment rather than price. An advisor can compare insurers and model different designs.
Does group disability coordinate with EI sickness benefits?
Often, yes. Short term disability plans are commonly designed to work with EI sickness benefits, either replacing them or paying first. A plan that qualifies under the EI premium reduction program can lower the employer's EI premiums, so an advisor can explain which approach suits your plan.
What to expect from a benefits advisor
A licensed advisor handles the details so you can make a clear decision.
1Discovery call
Share who needs coverage, what matters most and your budget. For businesses, bring your current plan and renewal if you have one.
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2Plan design
Your advisor recommends coverage levels and cost sharing that fit your needs, and explains the trade offs in plain language.
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3Compare insurers
Your advisor gathers quotes from multiple insurers and compares price, coverage and service side by side.
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4Enrol and support
Once you choose, your advisor handles the application and enrolment, and stays available for claims questions and renewals.
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