Disability Insurance- An income replacement plan.
For most of the working people our entire life style is dependent on our income. It may be the income we bring home by working on a job or running own business. But what would happen if we get injured or get sick and become unable to work for an extended period of time.
For a lot of us if we get injured at work, we may be covered by the workers compensation to replace part of our income. But that may not be enough. Or if we get injured while playing some sport or just doing something at home then WCB will not cover. You may not have the income if WCB or ICBC or other employee benefit plan does not replace some or all of your income. How will you survive?
How does it work
Disability insurance can play a major part in replacing your some of your lost income while you are disabled. There will be some conditions and limitations on the policy depending upon the type of policy and type of your occupation. There may be a waiting period and benefit period that you will have to choose from when buying the policy. Waiting period, benefit period, your occupation, age and gender will affect the premium for a disability insurance policy.
Disability insurance can provide the much needed financial security in case of a prolonged illness or injury. Statistically speaking one in three Canadians becomes disabled for 3 months or longer before reaching the age 65. Some of the employers do provide some disability insurance in the employee benefit plan, but you could lose the benefit if you change the job and the next employer may not offer the similar benefit package.
Disability insurance coverage for Mortgage or Rent
You can also buy disability insurance coverage based on your monthly loan or mortgage payment or your monthly rent. In that you may also include your other fixed expenses like the property taxes etc.
Complements Life Insurance and Critical illness insurance.
Disability insurance only provides an income based on monthly earned income, meaning it does not offer a lump sum benefit like life insurance or critical illness insurance.
Other links and resources
Learn more about disability insurance.
Click here to request a quotation for insurance needs. If you have any other questions please feel free to contact me at 604 592 5433 or email at [email protected].