Disability Insurance: Everything You Need to Know

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If you’ve played gambling before, you’ll know that the house always wins. You take chances, and occasionally they pay off, but most of the time they don’t. The same may be said about not having health insurance.

Nobody wants to consider the consequences of disability, but the truth is that it may happen to anyone, whether we want it or not. Disability insurance and medical travel insurance are available from the best health insurance companies Canada 

Disability insurance is hardly the first topic that comes to mind. While most Canadians are more at ease discussing death or significant sickness that comes with aging, we enjoy pretending to be invincible in our highest-earning jobs. This, unfortunately, is not the case. One in seven Canadians report having a disability, and 33% of employees between the ages of 30 and 64 will be out of work for more than 90 days due to an illness or injury.

Furthermore, accidents account for fewer than 10% of all disability claims, with the remainder being the result of sickness. We take for granted our ability to earn money. Why wouldn’t you want to protect your most valuable asset if you buy insurance for your other assets from the best health insurance companies Canada ?

What is disability insurance ?

Disability insurance, often known as income protection insurance, is a type of insurance that protects against income loss by restoring a major percentage of your salary if you become disabled. Whether your loss of earning capacity was brought on by a sudden accident or a degenerative disease, the best health insurance companies Canada that offer coverage typically agree to reimburse 60 to 85 percent of your regular income.

This ‘benefit’ payment is made to you until you regain your health i.e., return to work or till the end of your disability coverage period, whichever comes first. Benefit payments made on a monthly or weekly basis may be tax-free.

Types of Disability Insurance

Short-term disability insurance

When you are sick or injured, short-term disability insurance typically pays payments for up to 6 months. If your company offers a short-term disability plan, you must apply through that plan. Employers are not compelled to give paid sick leave, and each is unique. 

Discuss your intentions with your company’s human resources personnel, including any sick leave or vacation regulations that may apply.  If you do not have short-term disability coverage and your company does not provide it, you may be eligible for sickness benefits under Employment Insurance (EI). To be eligible for the EI disease benefit, you must meet the following requirements:

  • They frequently exhaust all of their sick leave.
  • Enough working hours

Long-term disability insurance

When the following benefits expire, long-term disability insurance benefits normally begin:

  • Insurance for temporary disability
  • Sick leave benefits provided by your employer

The majority of long-term disability policies will replace 60% to 70% of your pre-disability income. Each disability plan is unique. Some may pay disability compensation for up to two years if you are unable to return to your previous job. You can continue to get benefits after two years if you are unable to work in any employment.

Is disability insurance required ?

To be honest, this is a private matter that only you can answer. But!

As your reliable advisor, let us at CAPCO assist you. We are the best health insurance companies Canada and can advise you on all sorts of healthcare insurance including medical travel insurance. This one doesn’t require any insane math computations. Mandatory disability insurance for anybody who relies on a fixed income to pay rent or mortgage, anyone who needs a salary to support a family or for other daily expenses, and anyone who has restricted access to savings or investments to maintain your existing lifestyle. over an extended length of time or other monetary responsibilities If you are one of the few people who can live comfortably for the rest of your life on your current savings, this product may not be for you.

When should I consider buying disability insurance ?

If you require disability insurance, you should get it immediately now! If you’re in reasonably excellent health, you should be able to get disability coverage and lock in your insurance at this age. Alternatively, if your health deteriorates or your work changes, you may no longer be insurable in the future.

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