Business Loan Protection Disability Insurance

If you’re suffering from a serious illness that stops you from running a business, disability life insurance in Toronto can help to pay monthly loans. With disability insurance, you get complete financial security to focus on your health. But how does a disability life insurance plan in Toronto work to pay a business loan? Read on to know.

Why do Businesses Invest in Business Loan Protection Disability Insurance?

Business individuals generally invest in personal disability life insurance in Canada to cover expenses in the cause of injury and illness. Disability insurance replaces the income you lost because of injury and disease. Moreover, it helps to provide retirement savings and secure the family financially.

However, business loan protection disability insurance for employees or businesses is helpful for the following:

  • Helps to pay monthly loans
  • Run business smoothly
  • Businesses’ buy-sell funding agreement remains viable.

What Type of Disability Qualifies For Coverage in Disability Insurance?

Disability refers to the disease, injury, sickness, and other conditions preventing a policyholder from performing business duties. However, to qualify for disability life insurance in Toronto, a business individual must have the following:

  • Must have a complete medical record of disability.
  • The insurer should be under the doctor’s care for treatment and medical prescription.
  • An insurer qualifies for disability life insurance in Canada if they are dealing with a nervous disorder, mental illness, depression, anxiety, or behavioral disorder and continue to have treatment.
  • The person doesn’t engage in any wage activity or profit expectations.
  • Individuals must provide proof of disability for a claim. Moreover, an individual has to provide disability proof whenever they request an insurance claim.
  • The insurer may also ask for a medical examination at your expense to show disability proof.

What Disqualified For Business Loan Protection Disability Insurance?

An individual doesn’t get any benefit from disability life insurance in Toronto if their disability is due to the following conditions:

  • Normal pregnancy
  • Self-inflicted injury or suicidal injury is strictly disqualified from getting benefits of disability life insurance in Toronto.
  • Disability due to cosmetic surgery or other treatment.
  • Disability or illness due to a poisonous substance, drugs, narcotics, intoxicants, etc.
  • Disability occurs due to participation in criminal activities.

What Businesses Are Eligible for Disability Insurance?

Individuals must have the following things to qualify for business loan protection disability insurance.

  • Individuals must be a resident of Canada or working in Canada
  • Individuals must be indebted to loan providers under variable or fixed interest rates.
  • Individuals must be a sole proprietorship, corporation, or partnership, running a company or operating any other business.
  • A company that, absent a farm, aquaculture, or ranching, is, or absent incorporation, would be a small company concernedunder Section 248(1) of the Income Tax Act.

What Businesses Are Not Eligible?

Businesses that are not eligible for business loan protection disability life insurance in Toronto are:

  • Students who are studying in Canada or falls under the Canada student loan program
  • Non-profit organizations such as governments, churches, charities, and clubs.

Loans that are Eligible for Coverage under Disability Life Insurance

Almost all types of small business loans, commercial loans, lines of credit, farm loans, personal demand loans, mortgage loans, business purpose loans, credit card loans, and other business loan agreements are covered under business loan protection disability insurance.

However, some loans are ineligible for disability insurance, such as:

  • Letters of guarantee
  • Letters of credit
  • Personal loans (unless used for business or investment purposes) or mortgages
  • Personal credit cards or lines of credit
  • Banker’s acceptances
  • Any loans denominated in non-Canadian funds
  • Tender loans

Final Thoughts

Now that you know about business loan protection disability insurance, choosing the best advisor you can contact to understand your personal insurance requirement and business need is important. If you are looking for an expert who can advise you regarding business law protection disability insurance, contact us.

INUSREDCAN is the best insurance advisor who can guide you to discover the right type of disability life insurance in Canada that fits your requirement.

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