As a Canadian consumer, there is a good chance that you have limited money. Who doesn’t? You can’t spend it without worrying about it later. With that being said, you have to be very restrictive when it comes to choosing insurance products. Just remember that some are more important than others. If you’re looking for one of the most important insurance policies, you should buy disability insurance. It is likely the most important financial product for Canadian workers. Within this guide, you’ll learn a lot more about disability insurance and you’ll find out why it is worth it.
The Risks
Canadians face great risks. You may not realize it but you face risks every time you step outside. Furthermore, you never know when you’re going to get sick. An illness could lead to a disability and this means you’ll need to stay home from work. Could you possibly survive without having been able to work and make money? What happens if you are involved in a vehicle accident? You may have to recover for two years or longer.
You may be the household’s primary income earner. This means that financial hardship for you could lead to problems for everyone else. With that being said, you should put your mind at ease by acquiring disability insurance. This insurance will be very helpful since it’ll help you stay afloat while recovering at home.
The Basics Of Disability Insurance
Before going any further, you should take the time to learn more about disability insurance. It is one of the most important types of insurance because it pays a monthly benefit when you’re disabled. It is wise to acquire short term and long-term disability insurance. After all, it can take as long as six months before long-term disability enters the picture. During this time, you’ll want to take advantage of short-term disability. So, it is pertinent to have both.
Causes Of Short-Term Disability
There are various problems that could lead to a short-term disability claim. Some of the most common include pregnancy, digestive disorders, mental health issues, and musculoskeletal disorders. You never know what is going to happen so you must go above and beyond to defend yourself. Statistics show that long-term disability claims are mostly caused by cancer, pregnancy, injuries, and mental health.
Furthermore, Canadian consumers have to worry about bankruptcy when they’re disabled. The Canadian government may offer some relief but it might be enough. With that being said, you’ll want to obtain supplemental benefits. This is why you’ll want to obtain short-term disability insurance. Government benefits may not cover everything so disability insurance is pertinent.
Is Disability Insurance Worth The Cost?
While disability insurance is very important, some people may not need it. If you work a safe job, you may not have to worry about becoming disabled. So, you may be able to avoid buying disability insurance. It is pertinent to understand the risks you face on the job. If you’re healthy and work a safe job, you may not need disability insurance. However, other people will agree that it is a necessity. Working a manual labor job means that you may get hurt at work.
If you lift heavy objects at work, you should get disability insurance. Your job puts you at great risk so you should not wait. If you do, you may get injured on the job and you won’t be able to get assistance. Disability insurance is similar to life insurance. Does your family rely on your income? If it does, you need disability insurance. Either way, you should take your lifestyle and family into consideration when determining whether you need disability insurance.
The Importance Of Disability Insurance
At the end of the day, disability insurance is very important. Disability insurance is going to replace your income when you get sick or injured. A lot of disability insurance claims are related to depression, cancer, and musculoskeletal disorders. While they are rare, you never know. Anyone can experience a life-threatening illness. So, you’ll want to try to protect yourself from these potential problems. If you develop cancer, you’ll need all of the financial help you can get. Disability insurance will prove to be very beneficial.
Furthermore, you have to worry about experiencing a severe injury on the job. Injuries are very common in certain lines of work. If you work in manual labor, you’ll want to get disability insurance. After all, your ability to earn money could be negatively impacted. Whether you work construction or in a factory, you need protection. Disability insurance can provide you with the protection that you need. Get insurance and you will be able to work hard without having to worry about these problems so much.
Covers Your Bills
Despite not being able to work, you can guarantee that your bills are going to keep arriving in your mailbox every month. With that being said, you need to make sure that you’re able to pay your bills. If you cannot, you’re going to run into a lot of problems. With disability insurance, you can cover as much as 60% of your income. If you make $4,000 each month, the insurance will pay as much as $2,400 a month. While it isn’t as much as you were making, it might be enough to help you survive during this tough time. It is estimated that roughly 25% of 20 year olds will end up being disabled at some point before they reach the age of 67. The risks are immense.
So, you shouldn’t work another day without having disability insurance.
Disability Insurance And Work
Depending on the type of policy you have, you may be able to work while receiving disability benefits. You can purchase two forms of disability insurance including any occupation and own occupation. The type you get will make a big difference. If you receive an any occupation policy, you will not be able to work at all. This means that you cannot reasonably complete the duties for any job. If you’re able to find a job elsewhere, you’ll work it and lose your disability benefits. This could result in you obtaining a lower paying job.
With own occupation disability insurance, you can continue working and till get disability benefits. However, you cannot work your current job. You can take a different job doing something else but you must not be able to perform the duties of your current job. While you’ll pay more for your own occupation insurance, it is best.
Short-Term And Long-Term Disabilities
Unfortunately, you never know how long you’re going to be disabled. With this in mind, you should prepare for the worst. Thankfully, you can obtain two types of disability insurance. You can get short-term, long-term, or both. By looking at the names, you can see that short-term insurance protects you for a short period. Long-term insurance offers protection longer. In most cases, short-term disability will protect you for three to six months or so. Once that time has elapsed, you’ll need to switch to a long-term disability policy.
Long-term disability can provide you with benefits for a year or longer. However, there is going to be a waiting period. During the waiting period, you will not receive benefits. The benefit period can last up 10 years or until your retirement. Just remember that you’ll pay more for a longer benefit period.
Protecting Your Household
In Canada, a lot of families have one working member. You may go to work and contribute 90% of the income to your family’s income. Can you imagine how difficult it’ll be for your family if you are no longer able to work? It would be devastating. Your family’s income may go to nothing. You’ll want to do everything you can to protect your family. You have to make sure that your family is protected during this time.
Having a disability insurance policy will prove to be very helpful. During this time, you’ll be able to get money so you can continue caring for your family. Remember that you can contact ProfessionalsCoverage to get help finding a disability insurance provider.
Summary
You cannot predict the future. So, you need to take steps to protect yourself during difficult times. If you’re injured or get sick and can no longer work, you need financial assistance. To put your mind at ease and protect your loved ones, you should obtain a disability insurance policy. If you get injured or sick, your insurance policy will be there to help you. Just remember that you may need a short and long-term policy for the best results.
Types of Disability Insurance we offer
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
Other Disability Insurance Resources that you can read
- Are Canadian Disability Insurance Premiums Tax-Deductible?
- Will My Long-Term Disability Income Be Taxable?
- Dealing With Elimination Periods For Short And Long-Term Disability Insurance
- Pregnancy And Disability Insurance
- Who Pays For Disability Insurance?
- Why Employers Offer Disability Insurance
- Maternity Leave And Disability Insurance Benefits
- How Long Do Long-Term Disability Benefits Pay?
- How Much Does Long-Term Disability Insurance Cost?
- Is Disability Insurance Worth It?
- How Much Disability Insurance Should I Get?
- What Does Disability Insurance Cover?
- What To Look For In Disability Insurance?
- Do I Need Disability Insurance After I Retire?
- Does Disability Insurance Cover Pre-Existing Conditions?
- How Does Disability Insurance Work?
- How Long Does Long Term Disability Insurance Pay?
- Is Wage Loss Insurance The Same As Short Term Disability?
- When Does Long Term Disability Insurance Start?
- Can You Buy Your Own Short Term Disability Insurance?
- Can You Get Disability Insurance If You Are Unemployed?
- Can I Buy My Own Short-Term Disability Insurance?
- Can You Get Individual Short Term Disability Insurance?
- Are Credit Cardholders Insured By Disability Insurance Plans?
