Although it’s not a hugely popular option and often gets ignored, disability insurance is vital if you are disabled and do not have a source of income.
You can get disability income insurance, sometimes referred to as disability insurance, to guarantee that you can support yourself financially if an illness or injury renders you permanently handicapped.
Two kinds get covered by disability insurance:
- Group: All members of a group, such as employees of a company, for instance.
- Individual: A person who does not have group insurance coverage, such as a self-employed employee.
Disability insurance covers your financial ability to pay your obligations for a specific time:
- Short-term: The policy is in effect for a particular period, usually a set amount.
- Long-term: Benefits get paid out over an extended period that could get extended over years. Sometimes, it gets paid until the insured reaches the age of 65.
1: Disabilities Are Not Only a Problem for Others!
It’s not just about physical injuries. 75% of cases get linked to health issues. There’s still a risk even working in an office, not the construction industry.
Depression and anxiety are significant causes of disability.
Chronic illnesses such as cancer or heart disease, diabetes, and high blood pressure render employees unfit for various periods. Everyone is susceptible to developing a condition like this.
2: I Already Have Disability Coverage Under My Group Insurance Plan
You’re among the lucky ones if you’ve got disability insurance through your employer’s group insurance. For more information, go through the contract carefully.
Did you know the disability coverage provided by your contract may not be sufficient?
- A lot of plans offer the maximum amount of insurance benefits. After that, you will have to handle it by yourself.
- Most group insurance policies will cover a certain percentage of salary. Additionally, the benefits that get paid out under contracts can be tax-deductible.
If your coverage doesn’t look adequate, you could:
- Increase your coverage using options available through your employer’s group insurance plan.
- You can also take out personal insurance. Many options are readily available.
3: Disability Insurance Isn’t Cheap
Calculate the cost. Disability insurance can be expensive. If you find yourself in need of it, it’s worth the cost.
Peace of mind isn’t expensive!
4: I’ve Been Able to Access an Emergency Fund
Naturally, just like any other responsible employee, primarily if you work for yourself, you should have money set aside in case.
Did you realize that the amount of an emergency fund is required to be at least three months’ worth of income? While this is a substantial saving, it may not be sufficient for a long-term disability.
It is better to take out your disability insurance. You’ll receive substantial fixed benefits, usually tax-free in this instance, and be able to meet any financial obligation.
Discuss Your Financial Advisor with Them
Still unable to make your decision on disability insurance? Speak to your financial adviser.
We’re here to help you with your life insurance requirements at Ottawa Life Insurance. For further information, contact us by phone at (613) 454-1424 or by email at info@ottawa-lifeinsurance.ca.
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