Total Disability:

The inability to earn a living at any occupation

Return to Work:

Benefits continue until your earning reaches 80% of your prior income including inflation

Residual Disability:

Due to sickness or injury your income drops below 80%. Able to work on a part time basis.

Source: Life Insurance Marketing and Research Association

Disability has become a more serious problem

1. The chances of dying from serious and widespread ailments are lower
2. But the chances of living with these ailments have become quite high
3. Historically, hypertension, heart disease, cerebrovascular disease (stroke) and diabetes have been the four major killers of people age 45 to 65
4. As you can see. It is now far less likely that a key employee will die from one of these ailments. But living with the symptoms can mean prolonged total or partial disability

An "average" total disability can strike a devastating blow.

Average duration of a disability that has lasted 90 days before age 65

Source: 1985 CIDA and 1980 CSO, Based on 30 day elimination period in the top occupation class. Statistics vary by occupation.

As we just saw, it is very likely one of your key employees will become disabled. And when it happens, it can take a long time to recover.