Disability insurance provides income replacement if you become unable to work due to an illness or injury. It ensures financial stability during periods when you are unable to earn a living. There are two types of disability insurance: short-term and long-term, each offering different levels of support depending on the severity and duration of the disability.
DISABILITY INSURANCE
What is Disability Insurance?
How Does Disability Insurance Work?
Choose Your Coverage
Select the amount of coverage you need and customize your plan by adding optional benefits tailored to your needs.
Pay Your Premium
Make regular monthly payments to keep your policy active.
File a Claim
If you become disabled, you can file a claim with your insurer.
Wait for Payments
Once the waiting period is over, you’ll begin receiving monthly payments. The waiting period is the time between when you become disabled and when benefits start.
Benefit Period Ends
Your payments will stop once your benefit period expires or if you return to work.
| Feature | Disability Insurance |
|---|---|
| Payment Type | Monthly income replacement |
| When Do You Receive Payment? | When you’re unable to work due to illness or injury |
| Waiting Period | Typically, there is a waiting period before benefits begin |
| Coverage Duration | Coverage typically lasts until age 65, or as specified in the policy |
| Ideal For | Helping cover regular monthly expenses, like rent, bills, and groceries |
What Does Disability Insurance Cover?
- Short-Term Disability: Replaces a portion of your income if you are temporarily unable to work due to illness or injury.
- Long-Term Disability: Offers continued financial support if your recovery takes longer, providing income replacement over an extended period.
- Custom Coverage: Customize your disability insurance to fit your career, job type, and lifestyle for the best protection.
Why is Disability Insurance Essential?
- Ensures a Steady Income During Tough Times: Disability insurance provides a reliable source of income if you can’t work due to illness or injury.
- Helps Cover Daily Expenses and Medical Bills: It allows you to keep up with regular bills and medical costs, helping you focus on recovery instead of finances.
- Protects Your Long-Term Financial Goals: By replacing lost income, disability insurance ensures that you stay on track with long-term savings goals and retirement planning.
FAQs
What types of disabilities are covered by disability insurance?
Disability insurance typically covers both physical and mental health disabilities that prevent you from working, such as accidents, chronic illness, or injuries.
How do I know how much disability insurance I need?
The amount you need depends on your income, expenses, and lifestyle. It’s recommended to replace at least 60-70% of your income to maintain your standard of living.
Is there a difference between short-term and long-term disability insurance?
Yes, short-term disability provides income for a few months, typically up to six months, while long-term disability covers extended periods, sometimes years, depending on your condition.
How long does the waiting period last for disability insurance?
The waiting period usually ranges from 30 to 120 days, depending on your policy. This is the period from when you’re disabled until your payments begin.
Can I receive disability insurance payments if I am working part-time?
In many cases, partial disability insurance is available if you are able to work part-time, but the amount of benefits may be adjusted according to your reduced income.
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Suite 802, Markham, Ontario
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