Disability Insurance is often called Income Protection Plan or Replacement of Income Plan. If you become disabled, your ability to earn income may be compromised, and your ability to pay bills or save for retirement may decline. Your earning potential is a far more valuable asset than your automobile or your home. Accidents and sicknesses do happen in life. Disability insurance is customized to protect you from the possible loss of income. Disability insurance provides you with an income when you are unable to perform your regular occupation due to any injury or sickness.
Most people recognize the need for life insurance, but many do not understand the need for disability insurance. The fact is, when you are disabled because of an illness or injury, your income stops– but your bills don’t. Do you know that 1 in 3 people, on average, will be disabled for 90 days or more at least once before they reach age 65? A disability can last for months or even years?
Benefits are paid monthly after a certain waiting period has passed. (There are plans with zero waiting period too). The benefit is paid for the period of time you are disabled up to the maximum amount of time allowed in the policy contract. It could be either 2 years or 5 years or even longer like till age 70. Benefits are usually a percentage of your income. You can have benefits based on your Gross Business Revenue or Net Earned Income. Sometimes a disability affects your ability to work part of the time. That's when Partial Disability can help by paying the benefit amount.
Waiver of premium: While you are disabled and benefits are being paid, you are not required to pay premiums and your coverage will continue subject to some conditions.
Your eligibility for disability insurance and the cost of your premiums depend upon various factors such as your health condition, your earnings, your occupation and the type of coverage you aspire to purchase.
You can add the rider of Return of Premium. You will get back the amount of premium paid over a period of time if you meet certain conditions.
We offer a wide range of disability insurance coverage designed to meet a variety of personal and business needs. Whether you are a professional, business owner or employee, we can tailor a plan to meet your needs. If you are self-employed, your financial responsibilities go well beyond yourself and your family. Your business partners, employees and creditors also depend on your ability to work. Good planning can save your business. When you can’t work, routine bills can quickly eat up your investments, RRSPs and even home equity. Individual disability plans can be tailored to protect your net worth and to provide you with not only income replacement, but also to cover business overhead costs. These are the fixed expenses of recurring nature like rent, salary, phone bills, taxes, utilities, etc.
Disability Insurance
You can receive disability benefits from more than one source, but these plans are usually coordinated to make sure that all the benefits you receive are not greater than your normal income.
