Disability Insurance—Find a Secure Way To Save

 Disability insurance functions when you can’t. It can give you tax-free monthly income to aid pay expenses if an illness or accident stops you from working.

What Is Disability Insurance?

Disability Insurance in Toronto by Insuredcan can give you a tax-free monthly payment to aid replace your income and cover your expenses if an illness or injury keeps you from working. While a disability can frequently be visible to the naked eye, not all disabilities are so easily recognized. Chronic pain or a mental health matter can also qualify as a disability.

Disability Insurance in Ontario by Insuredcan, sometimes also referred to as income protection insurance, is an insurance product which offers you protection alongside loss of income by replacing a substantial portion of your paycheque if you become disabled. The insurance company that offers you the coverage typically agrees to replace 60 to 85 percent of your regular income, irrespective of whether the loss of your earning ability was due to a sudden accident or a degenerative complaint.

This ‘benefit’ payment is made to you until you return to good health (i.e. resume working) or until the end of your disability coverage period – whichever comes former of course! The monthly or weekly benefit payment is possibly tax-free, but more on that later.

How Does It Work?

Choose the amount you want and add possible benefits to customize your coverage. Pay your monthly premium. File a claim if you turn out to be disabled. Receive your monthly payments once the waiting period ends. The waiting period is the number of days from the date you’re disabled until the benefit start period. Your payments halt when your benefit period ends or you return to work. 

Why Do You Need Disability Insurance?

• It’s more common than you think :  Up to 40% of Canadians turn out to be disabled for 90 days or longer before age 65.

• Replaces most of your paycheque : Possibly receive up to 80-90% of your take home pay.

• Protect your retirement savings : Disability Insurance in Toronto by Insuredcan aid you meet your financial obligations so you may be able to avoid dipping into your retirement savings. 

What Are The Different Types Of Disability Insurance?

Broadly speaking, there are dual types of disability insurance. The categories work precisely as their names.

Short-term disability insurance 

It is typically offered to cover the loss of income from short-term or temporary health issues arising from a less-serious illness or accident. The benefit payments can begin as soon as you use up your sick leave, sometimes as early as 1-14 days after a claim is submitted, with coverage lasting characteristically amongst 6-26 weeks – although coverage can also go as long as 52 weeks.

It’s usually used for temporary health issues, like minor accidents, sports injuries and back problems that may prevent you from working for a few weeks or months. Short-term disability insurance also takes precedence. It is regularly applied to cover some or all of the period prior to the start of payments under long-term disability coverage.

Short-term plans are normally offered by your employer as they seek to attract and retain talent and typically cover 50 to 70 percent of your income. Some employers may not offer short-term coverage in which case employees that are eligible rely on federal Employment Insurance (EI) disability reimbursements.

Long-term disability insurance

It is used to protect alongside loss of income from more persistent, ongoing health issues. Its coverage usually begins right after the short-term disability period is over and the coverage time can be for 2 or 5 years, although most coverage last until the age of 65 (standard retirement age). It’s typically purchased by individuals to supplement their employer-provided Disability Insurance in Ontario by Insuredcan. It’s usually used for mental health problems, musculoskeletal problems, accidents, and more.