Disability Insurance

Disability Insurance

Could you retire tomorrow? If not, it’s most likely due to the fact that you need your paycheque to pay for things such as your mortgage, utilities, taxes, investments, vehicles, food, clothing, children, vacations and entertainment. How would you manage all of these expenses if you no longer had an income coming in? Which of these are you willing to sacrifice?

Many of us have worked hard to be able to live a certain lifestyle. How would a disability change your life?

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No one wants to stop and take the time to think about the fact that the risk of disability is very real.  Underestimating this risk can be financially devastating not just to yourself, but your family as well. Income Protection Insurance (otherwise known as Disability Insurance) provides you with a tax-free monthly benefit that allows you to maintain your current standard of living if you are not able to earn a paycheque due to a disability. Without this insurance, where would the money come from to pay your bills? Disability insurance policies are definitely worth the money if you still depend on your paycheque.

The big misconception of disability insurance is that it only covers you while you are working. Although this may be the case for Workers Compensation, it is not the case for individual disability insurance plans. It is important to understand the definitions of disability within an insurance contract as some are stronger than others.   This is very true when comparing group insurance to individual insurance.

Some individuals feel that they can rely on their group insurance and/or government benefits, however they are just hoping that they are adequately covered. It only makes sense to understand how your disability insurance works and how much income you would receive at time of disability.     Otherwise, you may find yourself worrying about how to keep the lights on when you should be focusing on recovery during a period of disability.

In choosing a Disability Insurance plan that’s right for you, it is important to consider the following:

  • What is the definition of disability? It is important that the definition covers you in your occupation and not just any occupation;
  • Will the policy pay out if you are partially disabled? Partial Disability and/or Residual Disability are necessary features as most disabilities either start or finish with a period in which you are not totally disabled; and
  • What additional riders are available to enhance the plan? Valuable riders include: Cost of Living Allowance (COLA); Future Income Option (FIO); and Return of Premium.

As Disability Insurance specialists, we work with our clients to determine how much you need, how soon you’ll need it and for how long you would like the benefits to last.

 

Contact us today to build a plan that properly protects your income.

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