When you purchase long-term disability insurance, the insurance company pays you an income per month after you become disabled for the period of elimination, usually 90 to 120 days. It will produce the disability benefit until you are disabled, but only until the period of use. The maximum service period is at age 65, which means you’ll be eligible for benefits until retirement if your disability is permanent.
The amount you’ll get depends on how impaired you are. Let’s begin by talking about a total disability.
Total Disability
It would help if you satisfied the criteria of disability to be considered completely disabled. It means that you are disabled due to illness or injury,
- You cannot carry out the essential duties of your regular job.
- You aren’t engaged in any other lucrative occupation.
- You’re receiving the correct medical care from a doctor.
It gets referred to as the standard occupational term for disability. You can get benefits from disability insurance coverage if you satisfy these conditions.
Your occupation is an optional enhancement to your disability insurance. It means you can get disability benefits even if you aren’t able to work at your job, even though you are earning a salary elsewhere. It is also the condition that you must not get employed in a different lucrative profession. Specific low-risk jobs may also be eligible for a job description.
Additionally, the “any occupation” job definition of disability makes it more challenging to qualify for disability benefits. To receive benefits, you must also prove that you can’t get employed in a job you are eligible for based on education, training, and experience.
For specific policies, the regular occupation period is for the first two years following disability before changing to the”any occupation” definition. When you purchase an insurance policy for a disability that is private, you may opt to extend the regular occupation time to the duration of the benefit duration. But this option isn’t offered with group disability insurance, which is another reason it gets recommended to supplement your group insurance.
Presumptive Total Disability
Suppose you lose your hearing, sight, speech, or the ability to use two limbs irreparably. In that case, you’re considered disabled and don’t have to meet other requirements. It means you don’t need to prove that you cannot be employed in your field to qualify for benefits.
Catastrophic Disability
Specific disabilities are so severe that insurance companies contribute up to 25% more to pay for the cost of long-term medical treatment associated with the condition. For instance, if you have a cognitive impairment that seriously affects your long-term or short-term memory, you are eligible for benefits from catastrophic disability.
Another method of determining eligibility is to lose the ability to perform one of the following six daily activities:
- Bathing
- Continence
- Dressing
- Feeding
- Toileting
- Transferring
Concerning Long-Term Disability Insurance, Do You Have Any Questions?
At first look, it might seem as though long-term disability insurance is for the effects of illnesses and injuries of every type. But, as you’ll discern, it’s much more complex than it appears.
The Disability insurance contract will decide the extent of coverage and what’s not. If there’s any dispute between the words in the contract is the one to be followed. It is why it’s crucial to be sure to read it thoroughly before you purchase disability insurance.
Insurance for a disability that is private can be a crucial element of a financial plan. If you’re self-employed or don’t have disability insurance through your workplace or an association, speak with Ottawa Life Insurance to ensure that you have the proper protection.
If you have any other questions about disability insurance, contact us at info@ottawa-lifeinsurance.ca or (613) 454-1424.
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