Significance of Disability Insurance

Author : einsured Admin

newcomers

Disability insurance can help protect you and your family’s income if an unexpected illness or accident leaves you unable to earn a living.

People usually give more importance to death benefits than living benefits. “Living benefits” is the term used in the insurance industry for benefits which are paid out when you are alive through disability insurance or critical illness insurance. They cover a living person’s lost income due to an unexpected illness or disability. In this blog, we will discuss the key benefits of buying disability insurance.

What Is Disability Insurance?

Disability insurance, also referred to as one of the income protection insurance, provides protection against loss of income due to an accident or sickness. This insurance replaces 60% to 85% of your regular income for a specific time duration. When premiums are paid after tax income, benefits are non-taxable too.

Why Buy Disability Insurance?

What would happen if you got hurt while commuting to work and could’t go to work for a few months? What about an illness which will take a year or two to recover? If you are the primary earning member of your household, it can result in financial hardship.

According to the RBC insurance survey, 50% of the Canadians have disability insurance, and the figure keeps growing. This points towards the increasing awareness and need of purchasing disability insurance to protect yourself and your dependents from any financial trouble.

You must Buy Disability Insurance if:

  • You are dependent on your regular income to pay for your lifestyle, rent or mortgage costs.
  • You want to ensure daily living expenses of your family are covered in case of an accident or sickness.
  • You have limited access to savings and investments that won’t suffice during any unexpected event.
  • You have other financial obligations.


  • Types Of Disability Insurance:

    Short-Term Disability Insurance – This type of coverage provides disability benefits if you are injured or sick for up to 24 weeks and can be extended upto 52 weeks in some cases. The plan usually takes care of temporary health issues that occur because of an accident or illness. The benefit payments start within 14 days once you submit the claim through your disability plan. An employer usually offers short-term disability plans to his employees. Generally, these plans cover 50% to 70% of your monthly income. However, some employers do not offer short-term coverage. In that case, employees rely on Employment Insurance (EI) sickness benefits or personal disability insurance.

    Long-Term Disability Insurance – As the name suggests, this disability insurance plan is for long-term which replaces 60% to 70% of your regular monthly income. This coverage starts right after the short-term disability insurance, sick leave benefits from your employer, or EI benefits. Long-term disability insurance provides coverage anywhere from 2 years, 5 years or up to 65 years of age.

    How To Buy Disability Insurance?

    You can buy disability insurance with the help of a financial security advisor. Directing your queries and concerns to a professional helps them in finding the best coverage plan at a minimum premium.

    Ask us if you have any questions about Disability Insurance. We at einsured.ca can offer various options for disability insurance.

    Please contact us for your no-obligation discussion at www.einsured.ca.

    Card image cap
    Permanent Life Insurance

    Life insurance policies that do not expire are referred to as permanent life insurance. Permanent life insurance usually includes a death payout and a savings component. What are the different types of permanent life insurance? Both whole and universal life provide lifelong coverage and tax-free cash gain, but they are structured differently. Whole life and […]

    Read More
    Card image cap
    What is Super Visa insurance and How Much Does it Cost?​

    Every year thousands of visitors come to Canada for tourism, vacation, or visiting families. Some stay for a longer period of time to reunite with their families. Canadian government launched a program in 2011 called “super visa” to help Canadian citizens and permanent residents spend more time with their loved ones. Those hoping to reunite […]

    Read More
    Card image cap
    Life Insurance 101​

    So don’t let these options confuse you. We offer a simple and definitive guide to help you through the process of buying term life insurance

    Read More
    Card image cap
    How to Compare Life Insurance to Get the Most for Yourself and Family​

    Life insurance is vital to planning for your future. It’s important to have the money you need to pay for expenses and care for your family in the event you are no longer there. None of us live forever. Although we all want to live to be 95, most don’t. That means a family with […]

    Read More
    Card image cap
    A Step-by-Step beginner’s Guide to Buy Life Insurance​

    Before I even begin to share the how, I want to congratulate you for even considering buying your life insurance. It’s a big step towards being financially responsible. It’s official –– you’re an adult! Jokes apart, buying life insurance is serious business and it requires a bit of research. This post is a step towards […]

    Read More
    Card image cap
    5 Reliable key terms on How to Buy Your Insurance Policy​

    How to Buy Your Insurance Policy, While getting an insurance policy is a no-brainer, you probably don’t know what to look out for when you are buying an insurance policy. There are so many products in the market that it can be very intimidating. Not anymore! I am breaking it down for you. Before I […]

    Read More
    Card image cap
    6 Remarkable ways to find your financial cushion in the midst of a pandemic and prepare for future income protection​

    It can be daunting to look at your big financial goals for income protection. If you’re reading this article, chances are that you know how important it is to plan your finances and prepare for future income protection. The interest in learning about financial planning has skyrocketed recently. Nearly 6 million people have applied for […]

    Read More
    Card image cap
    Top 6 reasons why you need Life Insurance, How to Easily Afford It, and What Benefits to Choose​

    Many people don’t buy life insurance. They feel they are too young to worry about it, or life insurance policies are too expensive, or they will have enough in savings and investments to provide for their family when they’re gone, or the end of life is just too uncomfortable to think about. Let’s look at […]

    Read More