Let Disability Not Impact Your Financial Health
Under the Canadian Human Rights Act disability is defined as a physical or mental state that limits an individual’s ability to perform some daily activities smoothly. A disability could be permanent or for a shorter time period, related to vision, hearing, and learning / behavioral, limb specific, or oral disability. Employment is one aspect that gets majorly impacted in case of disability. Disability not only affects physical ability but also impacts confidence level and mental strength.
What is Disability Insurance?
Standard health insurance covers the cost of basic health services but is not big support in case of disability because of an injury or accident. In such cases, Disability Insurance is your only savior. Disability Insurance provides cover for you and your family against unexpected injury or accident resulting in loss of income or employment because of disability. The insurance pays 65% to 80% of annual gross pay to the insured person in monthly installments up to the age of 65 depending upon the Disability Insurance plan. Most of the companies cover their employees under Work Safety & Insurance Board (WSIB) but it is valid only during working hours. However, Disability Insurance has no such clause. There are many companies that cover their employees under Disability Insurance but you can also purchase it for yourself and your family.
Why Do You Need Disability Insurance?
1. As per statistics 22% of Canadians age 15 and above are found with one or more disabilities.
2. Employment rate of disabled Canadians in the age band of 25 to 64 is 59% only.
3. Possibility of getting heavily injured resulting in 90 days or more loss of employment is very high i.e. 1 out of 3.
4. Assured monthly paychecks.
5. Family feels financially secure.
6. Offers diversified benefits equivalent to your regular income.
7. You can get insured despite your medical history.
Getting disability insurance can be tricky. It is important that you access your needs and budget correctly and choose the most appropriate insurance coverage.
- Short-term Disability (STD): Insured gets 70% of regular income, covers employment gap of 15-52 weeks.
- Long-term Disability (LTD): Starts after STD expires and extends benefits up to 2 years. To extend benefits you have to engage in work rehabilitation plans.
Points to Remember
To avoid mistakes while selecting plan, keep in mind the following points:
- Detailed analysis of your current needs, possible expenses in the future, and potential of cutting back.
- No. of dependents, their essential needs, and expenses.
- Do not forget your down payments and saving bonds.
- If you are self-employed then calculate the overhead costs of running your business.
- Some insurances offer coverage till 75 years of age.
There is a possibility that your insurance application gets rejected. You can plan everything yourself and can take guidance from a reputed insurance broker. MILIFE is an experienced player in the insurance field and has a panel of insurance experts in our team. We can provide the right guidance and help you in shortlisting the most suitable plan within your budget.