Have you ever been worried about what would happen if you are disabled and not able to earn? This is a scary scenario as you would end up without income finding it difficult to manage your expenses. In such a situation, disability insurance can be of great help. You can buy disability insurance from a top life insurance broker Toronto and get a policy that provides income protection. Accidents can happen at any time, at the workplace, at home, or outside. An accident that leaves you disabled can lead to serious financial problems. Disability insurance will help you in such a situation.
The Concept of Disability Insurance
Disability insurance is insurance protecting you against loss of income, as a result of a disability. In the event of a disability, you will receive an income from the insurer that helps you manage your expenses. Disability insurance is applicable for both temporary disability and permanent disability.
How It Works?
Disability insurance will cover anywhere from 60% to 85% of the income you are earning. You need to check the policy terms to find out the maximum amount payable and the duration for which this disability income will be paid. Even if you have a permanent disability, you cannot expect to be paid forever. The terms of the policy determine how long you will receive the payment. This is why it is critical you review the terms of the disability insurance policy before you sign up.
There are two ways you can get disability insurance. The first is through your employer. This is the ideal way to get disability insurance. Workplaces like factories can have hazards that pose the risk of getting injured and disabled. This is why employers offer disability insurance to their workers. Such a disability policy would be a good option. Unfortunately, not all employers offer disability insurance. You then need to get your own policy from a private insurer.
Group disability insurance is another useful option to consider. Even if your employer doesn’t offer it, check out if you can get it from a labor union or a professional body that you belong. Such group insurance plans will offer you good disability coverage and the plan pricing will be much lesser than getting a private policy. You also need to find out if the insurance offered is short-term or long-term.
If you get a private policy, where you pay the premium then any disability benefits you earn are entirely tax-free. However, if your employer pays the premium, it is subject to being taxed.
Getting Insured
If you feel that your work or your environment exposes you to the risk of disabilities, then you can consider getting disability insurance. Try to get coverage from your employer. If that is not possible or it is not adequate, you can look for private insurance. Talk to the best life insurance broker in Canada who will help you find a policy that meets your needs. Compare different insurance policies before choosing one that offers sufficient coverage and is priced competitively.
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