Disability Insurance
In the event of a disability your financial plans can be thrown into jeopardy. Your ability to earn income may be compromised, and your ability to pay bills and save for retirement may all but disappear.
Insuring against the unexpected is an important component of sound financial planning. It’s second nature to insure your belongings against fire, theft and damage, and to obtain Life Insurance to protect your loved ones in the event of your death. But, when it comes to your health, Disability and Critical Illness Insurance are typically overlooked.
Many Canadians rely on government and employer funded plans that can be inadequate. Disability insurance is designed to help you by replacing a portion of your lost income.
Statistic Of 1,000 people Aged 35:
- 330 will suffer a disability of at least 6 months before they reach 65
- The average length of this disability will be 5 years
- 33% will be disabled for life.
In Canada, there are three sources of Disability Insurance:
- Public (Canada Pension Plan, Employment Insurance and Workers Compensation)
- Individual and Group (employers and associations) insurance plans
- Individual Disability Insurance
Disability Definitions
Generally, a ‘regular occupation’ disability definition means that as long as you’re not working because you can’t do your regular job, you’re considered disabled.
However, you’re no longer considered disabled if you go to work at a new occupation. So, for instance, if you were a carpenter and lost the use of your arm, you would be considered disabled. If you later chose to work at a different field, your benefits would cease.
An ‘any occupation’ definition of disability is stricter since you will only be considered disabled if you’re unable to work at any job, generally for which you are qualified.
An ‘own occupation’ definition means that you’re considered disabled if you can’t perform the duties of your usual job, regardless of whether or not you’re capable of, or are actually working at another job.
Unfortunately you can’t predict the course of your health over a lifetime.
Choosing the right policy can be a confusing process. To help you sort through your options, you should speak with a professional. A Licensed Insurance Representative will have the expertise to help you choose the products and company that best meets your needs.
For more detailed information on Disability Income Insurance contact us.