Why disability Insurance?
If you are not ready to retire then right now, you’re focused on earning a living.
But how would you protect your income if something happened that kept you from working?
Disability insurance is to help you pay your bills if you are unable to work due to an illness or accident. The best part is that you can customize a plan to fit your needs and your budget.
The reality is that too many Canadians do not have the financial means to see them through an unexpected loss of income.
Disability insurance pays you monthly income replacement benefits when you are not able to work due to an illness or an accident. This benefit is based on your monthly income and is paid to you for a period of time that you select based upon your financial needs.
With Disability Insurance, you can focus on getting better!
What is disability insurance?
Disability insurance is designed to replace your income or a portion of your income if you become disabled and are unable to earn an income. A disability can result from a number of causes, including an injury, a serious illness or a mental health issue. And the duration of a disability can be either short- or long-term.
There are different kinds of disability insurance coverage, including individual insurance plans and group insurance plans, as well as government plans such as workers’ compensation and benefits provided under the Canada Pension Plan.
Disability insurance options
Many options to choose from:
Cost of living: monthly benefit will be increased based on the Consumer Price Index
Partial disability: receive monthly benefit payments even during a partial disability or a gradual return to work
Residual disability: receive partial benefit payments in case you do not fully recover
Refund of premium: refund of 50% of the premiums paid when the contract matures, minus any benefits received
Future insurability: option to increase the benefit amount as your income increases, regardless of your state of health
Regular occupation period extender: be eligible to continue receiving your monthly benefit, after 24 months of total disability even if you are able to perform another type of occupation
Disability Insurance allows you to cover your expenses and rehabilitation costs without dipping into your hard-earned savings or putting yourself into debt that you may never get out of.
Considering how important you are to your family and/or business, you have every reason to protect yourself against the unexpected.
Return of premiums
This option allows you to get a 100% refund of your premium payments if you remain in good health.
With return of premium options, your disability insurance policy can help you accumulate savings! If you don’t suffer from one of the illnesses covered while your contract is active, you can receive up to 100% of the premiums you’ve paid! This guarantees the payment of a tax-free benefit upon the first occurrence of one of the covered illness
You work hard to build the lifestyle that you and your loved ones deserve. It’s hard work, but the future looks bright. Have you ever wondered how to protect your most valuable asset; your earning power? What would happen if you could no longer work? How long could you afford to keep things going? Ask yourself this: have you done all you can to protect against a sudden and unexpected loss of income?
The reality is that a disability can happen at any time and without warning. It could prevent you from working for a time or even take you out of the labor market completely. You can’t prevent a disability, but there is a way to keep the lifestyle you’ve built, come what may, a comprehensive disability insurance coverage can be a good solution for financial security.
In the event of a disability, disability insurance provides you with an income replacement benefit so you can focus on your recovery. Be it, your mortgage or rent, groceries or childcare fees, you’ll have what you need to pay for your bills and daily expenses. You can therefore avoid the financial worries and preserve your savings and assets.
Why disability insurance makes sense
Those whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase policies. Premiums and available benefits for individual coverage vary considerably between companies and occupation classes. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim. Premiums also tend to be higher for policies that define disability in broader terms, meaning the policy would pay benefits in a wider variety of circumstances thus covering more insurances that the individual was going to purchase.
How much does disability insurance cost?
The cost of disability insurance is based on your age, health, personal needs and the options you select, and will therefore vary for each person. Your financial security advisor from Final Expense Ontario is best equipped to help you determine your financial needs should a critical illness occur and calculate the cost of your insurance.
If the insured person pays 100% of the premiums, any benefits they receive will not be considered taxable income.
Premiums paid for an individual disability income insurance policy are considered personal expenses. If premiums are paid by the employer, payment should be made “on behalf” of the employee, with the premiums transferred to the employee as a taxable benefit. It will be deductible for the employer on the condition that the insured person is considered an employee and not a shareholder.
Who is eligible for disability insurance?
For those in good health. Now is the time to apply!
Would an insurance company agree to insure your house against fire if it was burning down? It’s somewhat similar with critical illness insurance: you can’t obtain insurance if you already have an illness.
Not in good health?
You can still qualify for a simplified disability insurance policy with limitations.
Contact Final Expense Ontario’s insurance advisor today to start working on your Disability Insurance plan.
Final Expense Ontario is here to help you find accommodating Disability Insurance policies. We help you make your decision with total peace of mind. Call now for a no obligation free consultation 1-800-593-1817 or Get Quote
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Talk to a licensed insurance advisor from Final Expense Ontario 1-800-593-1817 to make the decision that’s right for you and your family’s needs.