Everything You Need to Know About Disability Insurance


Canada Life Disability Insurance

What’d be your reply if someone asked you, “What is your most valued asset?” Your answer may be your house or perhaps your car. But have you ever considered your capability to earn a living? Over your lifetime, that is far more valuable than your house or car. You probably have purchased insurance to safeguard both your car and home, but do you have insurance to replace your earnings if something unfortunate happens.

What are your chances of becoming disabled?

You may have a greater chance of becoming disabled than you think. Research shows before reaching age 65, 1 in 4 Canadians won’t be able to work for 90 days or more because of illness or injury. If this circumstance lasts more than ninety days, its average time span is almost six years.

Though there are government programs like the Canada Pension Plan (CPP) or Workers’ Compensation that can help, you have to fulfil certain conditions to become eligible for them. For instance, to get the benefits offered by Canada Pension Plan, your disability has to be server and prolonged enough to stop you from working at any job. Workers’ Compensation does not cover disabilities that result from a non-work-related incident.

What’s disability insurance?

Disability insurance offers protection against loss of income in the event that a disability prevents you from working. Disability insurance is broken down into two categories: short-term disability and long-term disability. Short-term disability covers temporary disabilities, while long-term disability covers disabilities lasting more than six months.

How does disability insurance work?

You have to file a claim after becoming disabled. Once the insurance company approves your claim, there’s a waiting period (which is the number of days from the date you are disabled until the benefits start date). Chosen at the time you apply; this waiting period can be anywhere from thirty days to one year. Your monthly benefit would begin once this period is fulfilled.

If you qualify, disability insurance can replace part of your lost income. For instance, if you’re earning $50,000 per year and become disabled, you could be entitled to get a monthly benefit of $2,975, representing a yearly income of almost $36,000. In the event a person earns more, for example, $120,000, he/she may be eligible for a monthly benefit of just under $6,000, representing an annual income of $71,100.

Not sure which type of disability insurance will give you the best protection? Gurinder Chahal Insurance Specialist offers specialized advice for Canada Life Disability Insurance. We will help you find the best rates without being loyal to one company. Feel free to call and get your Canada disability insurance quote now!

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