Disability Insurance: Why Do You Need It?
Although most people are familiar with life insurance, they may already have this type of coverage to provide for their families. In spite of this, many people aren’t aware of the financial distress they may face if they suffer an injury or illness that leaves them permanently or temporarily disabled.
Disability is More Prevalent Than You May Think
In the event that an injury or illness prevents you from working, how will you pay your living expenses such as mortgage, utilities, and groceries if you can’t work? It is very unfortunate that almost half of Canadian workers do not believe that they have the funds to cover their expenses if they are unable to work due to illness or injury.
Disability compensation is provided by the government through the Canadian Pension Plan (CPP), but you must contribute and meet strict eligibility requirements. Employed Canadians contribute half, but the more than 33% of self-employed Canadians are required to contribute the full amount and self-fund their disability insurance. EDGE personal disability insurance gives you the protection you need – whether you’re self-employed or your employer provides you with benefits – without having to jump through hoops to receive your benefits.
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What is Disability Insurance?
Do You Know Self-Employment is on The Rise in Canada?
There are over 500,000 self-employed individuals requiring disability insurance on their own. Disability coverage can insure against the loss of income due to injury or illness that prevents you from working by providing you with a monthly income replacement that can be used for anything you need-from paying medical bills to ensuring family is still able to make car payments.
How Disability Insurance Became a Lifeline
For Scott Rider, there is one thing in his life that has not changed. With the disability insurance he purchased, he and his family have been able to maintain their lifestyle. It’s something he received when he was just starting out in his career, and it’s grown as he earned more money. A significant portion of the income he once earned has now been replaced by disability insurance. In addition to staying at home to care for her children, it has enabled Kelly to work as a caregiver as well.
Valerie King says a chronic illness ended her career as a doctor – twice. A disability insurance policy enabled this single mom to raise her three daughters without worrying about money.
How Much Disability Insurance Do I Need?
In general, you’d need enough disability insurance to cover your monthly expenses, unless you plan on tapping your savings, in the event you couldn’t work. But there are other factors you’ll want to consider, such as a partner’s financial contribution, so using an online Disability Insurance Needs Calculator like the one at lifehappens.org/dicalc can be a smart move.
A Life Changed,
a Lifestyle Remains
For Scott Rider, running was his life. It gained him a slot in the Olympic trials and sustained him as a hobby as he and his high-school sweetheart, Kelly, married and raised three children.
We provide Disability Insurance Services in the province of Alberta, BC & Saskatchewan
How does Disability Insurance Work?
A disability insurance policy can be divided into two types. Long-term disability insurance usually pays a portion of your lost income no matter how long you have been disabled. Short-term disability insurance covers lost income for a period of about three months, while long-term disability insurance covers your lost income up to the rest of your working life. The majority of people choose to have both types of coverage.
What is the Cost of Disability Insurance?
Benefit amount, benefit period, occupation, health status, age, and policy terms all contribute to this decision. Generally speaking, long-term disability insurance costs between 1% and 3% of your annual salary.
What you need to know about disability insurance
If you had a life-changing accident or were diagnosed with a critical illness tomorrow, would you and your family be able to cope?
Ten years ago, Janet Freedman was rushing out the door of her home for work. Her arms loaded with tax returns, she missed a step on the stairs on her front porch and fell, hitting her head on the concrete. When her neighbours found her, she was barely conscious, with her head trapped between her own front steps and those of the house next door.
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Thought Leadership : Employee Benefits - Disability Insurance
