When it comes to insurance – it’s easy to get confused.  The contracts are lengthy and there are many terms that you may never have heard in the past.  This is why it’s important to work with a broker who is an expert, and can help you understand how the coverage works and help you navigate the market.

What’s your most valuable asset?  For many of us, it’s our ability to earn an income.  The money we make is what allows us to pay our bills and put food on the table. If that income stopped, what impact would that have on you and your family?   I have always said – it’s important to insure the things you can’t replace. Unfortunately it’s true, money doesn’t grow on trees.  It’s our ability to work that brings home the bacon.

Hopefully you agree, and understand how vital our incomes are. Accidents can happen at any time and people do get sick. In reality, the chances of becoming disabled, thus affecting our income and standard of living, are higher than you may imagine.  You may not even realize that you can purchase insurance that will replace your paycheque.   It’s important to purchase this type of coverage when you are healthy as underwriting can be strict. This means past medical concerns can lead to exclusions or even a decline, preventing you from obtaining the coverage you may really want.

You may be curious to what types of disabilities are covered under a high-quality disability plan.  Well, there isn’t a list.  It’s pretty much any type of injury or illness (including mental health) that is impacting your ability to earn an income. You don’t even need to be totally disabled to collect payment from such high quality policies.

The better plans would pay out a partial benefit if you are only able to work part time or experience at least a 20% decrease in income due to an injury or illness.  While one may still be able to work during a period of disability, they may not be able to earn the same level of income as when they were healthy.  Think of certain professions where an income is based on performance and how suffering a disability could impact the way they work.

While the coverage is typically referred to as Disability Insurance – it’s not always the disability itself that warrants a claim.  I have seen clients who suffered a disability and still be able to work in the same job and earn the same level of income – they wouldn’t be able to qualify for a claim.  However, if that disability prevents that person from working or earning the same level of income, a good and comprehensive contract will be there to help during a very difficult time.

This is why I like to position Disability Insurance as Loss of Income Protection or Paycheque Protection. No matter what you want to call it, it’s simply protecting your ability to earn an income in the event of an injury or illness.

How much does it cost? Typically, one should expect to spend 1% – 3% of their income towards the coverage.

Have you discussed protecting your paycheque with your insurance broker lately?! We, at SecurePlan, are always ready to help you. Feel free to reach out to us anytime to talk more about it, and find out also additional options we can tailor to meet your specific needs.