LTD Settlement Calculator

The value of your Long Term Disability claim is determined by many factors. An accurate assessment cannot be achieved by a calculator alone. However, LTD claims are contractual and are governed by certain defined parameters, including your age at the time of denial and the benefit amount. Once the value of the policy is known, this sum must then be reduced for several factors, including:

• The strength of the medical evidence. Does your family doctor support disability? Does a treating specialist support your claim as well? Are you getting regular treatment? What will the expert evidence be?
• The nature of the illness or injury. Some causes of impairment are more likely than others to improve over time.
• The test of disability as defined in your policy. This often changes from “own occupation” to “any occupation” after two years. Some policies contain residual or partial disability provisions.
• The possibility of a return to work in the future.
• The possibility of qualifying for CPP Disability or other offsets, which reduce the amount the insurance company is required to pay.
• Application of a present value discount, to account for the time value of money.  The combination of interest and inflation makes money paid today worth more than money paid out over time.  If you are young, the present value discount can have a large impact.  The reduction is less if you are older. 

To use the Long Term Disability Settlement Calculator, enter your age and monthly benefit amount. Then choose a settlement discount ranging from 25% to 75% to account for the above factors.