Disability Insurance

Disability Insurance is designed to protect you from the loss of income caused by a disability. Should you become disabled the policy would replace a portion of your income.  Although many individuals may have Long Term Disability coverage through their group benefits plan, it is important to review those plans with an advisor to be clear on how the policy works and what your actual benefit may be.  The definitions within the contracts can vary greatly.

One way to think about disability insurance is that if you had a machine in your basement that was going to produce money for you for the rest of your life, wouldn’t you insure it?  So it follows that as long as you are healthy you will be able to produce income for you and your family.  Should you become unable to work, a disability policy will replace that income for as long as you’re disabled.

Why should you consider a personal disability insurance plan?

• Worker’s Compensation only covers work related accidents.
• Employment insurance only covers 15 weeks.
• Canada Pension Plan Disability Benefit: Are you comfortable relying on the                government for a benefit that is based on a strict definition of disability and it              would be adjudicated by a civil servant?
• Group and Association coverage can fill a valuable role in long-term disability            protection. However, the benefit may be limited by the definition of disability and      coverage amount.

A custom designed, individual disability insurance plan will provide you with guaranteed coverage and guaranteed premiums.  There are many variations of disability insurance products, so it is important to work with an advisor to design a plan that best suits your needs.

* Derived from 1985 Commissioners Individual Disability Table A.