We often consider the time we’re getting closer to retirement or how thrilled we are with our weekend plans after a long day. However, what happens if you cannot work? One of the most effective methods to safeguard your source of income is by purchasing long-term disability insurance suitable for employees and self-employed workers.
But what exactly do you receive from disability insurance? What happens if the business you work for fails when you get covered by disability insurance? In the following article, we address all of these queries and more.
Do you need disability insurance?
The choice of insurance is ultimately up to you. Still, it’s always a good idea to have a bit of extra security. It is especially the case in the case of a job that demands you to be mobile and utilize a large portion of your body during work. It is the case for the manufacturing, trade, and entertainment industries.
But, disability insurance can benefit those who want to secure their income and receive payments regardless of accident or injury that keeps them from working at a high level.
Can I obtain long-term disability insurance if I work for myself?
Yes! Disability insurance can be highly beneficial as a safety net in case of a catastrophe to your company; you will get a steady income to support yourself. To get disability insurance as a self-employed, you’ll have to show evidence of your earnings for an extended time to prove you’ve been self-employed for a long time.
What are the advantages of long-term disability insurance for self-employed and employed people?
Suppose you are involved in a debilitating accident. In that case, long-term disability insurance will provide sufficient monthly payments for you to live on without fear. The amount is enough to cover food items, rent/mortgage, utility bills, etc. You can continue living free of stress and not worry about your monthly bills for the necessities.
What are the types of disability insurance?
Short-term disability insurance and long-term disability insurance are the two types of disability insurance.
Short-term disability insurance gets generally provided to help cover losses in earnings due to short-term or temporary health problems caused by a less severe accident or illness.
The benefit payment will begin when you’ve used all of your sick leave, which can be from as little as 1-14 days after the claim has to get filed, and the coverage usually lasts between 6-26 weeks. In some instances, the benefit can extend all of 52 weeks. You’re likely to seek this type of insurance in case of back pain and sports-related injuries that stop you from doing your job.
Long-term disability insurance gets designed to provide coverage for protracted periods. LTD’s goal is to be claimed if you suffer from ongoing, crippling medical conditions that hinder you from working consistently or even entirely for two years to age 65.
Common health conditions that people seek this type of insurance are musculoskeletal issues and catastrophic and crippling injuries.
Will I still receive disability insurance payments if my employer goes bankrupt?
You don’t have to fret about the insurance payments. Since the money comes from your insurance company, not the bank, you can keep receiving regular payouts.
Having a backup plan when earning money is always a good idea. Short-term and long-term disability insurance will provide cash when you require it the most. It can also help you keep living your life to the fullest.
We’re committed to helping our clients remain secure in moments of need. Contact Ottawa Life Insurance at (613) 454-1424 or email info@ottawa-lifeinsurance.ca for further information.
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