Disability Life Insurance- A Smart Way to Protect Your Pays
Individuals earn to maintain a living standard for their families and themselves. A good source of income helps you plan retirement, educate children and fulfill financial requirements. But what if you get injury and are unable to work for longer? Let’s face it! In Canada, every year, thousands of Canadians meet with accidents and become physically disabled due to accidental injuries. The disability can be permanent or for a short period. In such instances, disability life insurance in Toronto is beneficial to get income for a particular period.
What is Disability Insurance?
Disability insurance is a form of insurance policy that provides income when you are unable to work due to injury. This insurance plan provides either steady living benefits or in the form of monthly payments to the insurer. Individuals can claim disability insurance in case they meet with an accident. Individuals can use benefits received for expenses or anything you need, including:
- Utilities
- Mortgage
- Auto loan
- Personal loans
- Credit card payments
- Student loans
- Childcare
- Retirement contribution
- Groceries, and many more.
Types of Disability Insurance
Depending on the type of disability, there are different kinds of disability insurance available for Canadians. This means a disability insurance plan for all types of physical injuries. A few of them are as follows.
Short-Term Disability: This insurance plan provides the insurer with monthly payments for up to 52 weeks.
Long-Term Disability:- It provides income benefits for more than one year. This disability insurance in Toronto provides coverage for up to age 65 years.
Disability for Self-Employed:- This insurance plan is specially designed for self-employed individuals. The sum assured money helps to protect business and steady income when you are not in the condition of work.
Disability Over Age 65 Years:- This insurance is for Canadians over 65 years of age, retiring, and having a physical disability. It provides insurance coverage up to the age of 75 years.
Guaranteed Renewable Disability Insurance:- This type of disability insurance provided to Canadians with ongoing coverage even when a disability claim has been filed.
Non-Cancellable Disability Insurance:- Non-Cancellable Disability insurance is a coverage that can only be discontinued by the insurer and offers Canadians guaranteed benefits for the plan’s lifespan.
How Does Disability Insurance Work?
Disability insurance is designed to provide 45-65% of the gross annual income. The policy contains basic features such as:
Premium: This refers to the amount an individual pays for the DI policy. The premium may vary according to the type of coverage, benefits amount, health record, length of the policy, and also many other factors.
Benefits: This refers to the sum assured you receive when you cannot work. The benefit may be 65-80% of your monthly income.
Benefits Period: The benefit period for short-term disability will be around one year. However, for long-term disability, the benefit period can range from two years until retirement.
Waiting Period: This is also referred to as the elimination period. It is the period between being handicapped and collecting benefits.
Definition of Disability: Each policy of disability insurance has its definitions. Individuals have to qualify according to the disability policy to get the benefits. For instance: An own-occupation meaning means you are eligible if you are unable to work in your profession, including any area of expertise, because of your disability; any occupation signifies you only qualify if the disability precludes you from continuing to work in any occupation for that you are or will be fairly suited by the learning, mentoring, or experience. Likewise, if you are employed in any other company, the definition of disability will be different.
Ask Experts Before You Invest
Disability insurance policy premiums and coverage may vary according to the policies. So, prepare your questionnaire list to invest in the right Disability insurance policy in Toronto. Find out what policy works for you and what benefits you get. Similarly, ask yourself, are you working at a risky place where the chances of injuries are high?
If you need answers to all the above-listed questions, come to us and get a quote online. Our expert insurance advisors will guide you in picking the right policy.
