The Basics of an ILRP:

  1. The employer is the owner of the individual disability contracts
  2. The premiums are paid by the employer and are deductible business expenses
  3. The premiums paid by the employer are NOT taxable benefits to the employees.
  4. The disability benefits under the policy will be paid directly to the employee.
  5. Any disability benefits received by the employee while a member of the plan will be taxable.

Please contact Ian MacLean at 604-646-5801 or email

The Income Loss Replacement Plan is an arrangement between an employer and employees that provides the employees with an income during disability. This arrangement may be formal or informal. The employees are insured under individual contracts of disability insurance pursuant to a common plan. The ILRP is an alternative method of grouping individual disability income policies without the use of a Health and Welfare Trust. An ILRP may be established for as few as 2 employees.

Income Loss Replacement Plan (ILRP)

Tax Deductable Insurance