Disability Insurance

Disability insurance is a type of insurance that substitutes part of your income should you become disabled. Unlike other forms of insurance, disability benefits do not come as a lump sum, but as monthly payouts. Disability cases are clearly defined in an insurance policy and have a number of special conditions such as defined waiting times, (elimination period), the types of work in which you can be engaged after disability etc.

Disability is beneficial when:

• You need a stream of income when you are not able to work, as you have family and dependents that rely on this income.

• Disability insurance is vital for business owners.

• Most employees will have some disability coverage as a part of their work benefit package, you could lose this protection if you change your job.

• Statistics indicate one in three Canadians becomes disabled for three months or longer before the age of 65.

  Disability insurance costs are higher than term life insurance costs, due to large percentage of Canadians that will make a claim on their disability plan.Be aware you cannot increase coverage above a particular percentage, and that percentage is linked to your income.