As Canada’s population ages and employers desire to retain older workers, the need for income protection provided by long-term disability (LTD) insurance becomes more pressing. A study by the Canadian Institute of Actuaries revealed that age-based limits in long-term disability insurance, usually ending at age 65, lack equity, leaving older employees vulnerable if they suffer from injury or health issues.

The study indicates that due to shifting demographics and an increasing number of people choosing or needing to work beyond 65, current insurance plans require adjustment. Although coverage is gradually extending beyond age 65, this varies case by case based on cost assessments and how these are allocated.

There is growing awareness, particularly in certain sectors, to view the age 65 cut-off as discriminatory. Employers can face liability if their benefits do not accommodate their workforce’s needs, and there is a clear demand to consider changes. The authors suggest that while age should still be a factor in determining eligibility and duration of coverage, a universal age 65 cut-off may not be suitable for all workplaces.

Insurers are urged to be proactive in conversing with employers concerning group benefit plans, while employers should involve employees in the process, given the likelihood of increased premiums. Furthermore, Brokers are advised to encourage their clients to seek solutions before potential issues emerge.

In conclusion, as companies, insurers, and employees grapple with changing demographics and shifting retirement norms, it is crucial to adapt insurance coverage to meet these new realities. Although the matter of long-term disability insurance is complex, constructive dialogue and innovative strategies can ensure all parties are adequately protected and supported.