Disability Insurance in Canada
Unlock Peace of Mind with Disability Insurance in Canada – Comprehensive Disability Coverage for All
Disability insurance is designed to provide financial support to individuals who cannot work due to a disability caused by an injury or illness. It ensures that the disabled person is able to finance a portion of their expenses and meet financial obligations even in the absence of their income.
When you are the sole earner of the family and self-employed, obtaining this insurance is important, as it will save you from significant financial hardships if you face an unfortunate accident or disability. The income loss can be a great blow to your family and their plans & dreams. This insurance remedies that.
Types of Disability Insurance
Short-Term Disability Insurance
This insurance type is designed for short-term disability, such as when recovering from surgery or illness. It typically covers you for a few weeks or months.
Long-Term Disability Insurance
This insurance type is designed to last several years or until you reach the retirement age. It is good in case of prolonged disabilities.
Group Disability Insurance Vs. Individual Disability Insurance
The terms are self-explanatory. Employers often offer group insurance as part of your employment benefits, where you receive a benefit based on your basic salary (excluding bonuses, commissions, or other incentives). On the other hand, individual policies are much more flexible and beneficial. Group insurance benefits are available only until you are employed with your employer. If you change it, the policy benefits cease to exist for you. However, the premiums of individual policies are on the higher side.
Common Causes of Disability
- Chronic illnesses, such as cancer, diabetes, etc., are among the most prominent ones.
- Accidents, including workplace accidents or others
- Injury
- Musculoskeletal disorders caused by wrong postures for a long time lead to permanent joint problems, tendons, etc.
Coverage Details
You need an expert by your side to obtain disability insurance in Canada if you are looking for an affordable and suitable policy. Read on:
Definition of disability
The definition of disability differs from policy to policy. Some policies offer coverage if one is unable to perform the duties at one’s own occupation, while others might offer coverage for the inability to perform any type of work.
Percentage of Income Covered
Most policies cover up to 60-70% of the income. The disability coverage also extends to the financial support required for the rehabilitation of the disabled individual, aiding in returning to work as soon as possible.
Duration of the Benefits
It depends on the policy term that you choose. In the case of short-term disability insurance, it ranges between six months to one or two years maximum. In case of permanent disability, it covers you until the retirement age.
As per your needs, get a disability insurance quote now!
Key Features and Benefits
Income Replacement During Disability
The best feature of this insurance is that it saves you and your family from any financial struggles that result from an accident and its resulting disability. It offers stability during stressful times.
Rehabilitation Benefits
Some insurance companies offer rehabilitation benefits with the policy where you are provided financial support for rehabilitation to recover and return to work.
Coverage for Partial Disability
If the individual does not recover fully and can only work part-time or perform limited duties, some policies provide financial support in that case.
Criteria and Eligibility
- The individual must be within the age limit, i.e., 18-65.
- Should have made enough contributions to the Canada Pension Plan (The mental and physical disability should be severe at the date the contributions were made to the CPP)
- Must be full-time employed.
- Must be a Canadian resident.
Apart from these, check with our agent about the exclusions and limitations of the multiple policies so they can help you choose the right one for you.
Costs and Affordability
When buying an insurance policy, it is suggested that you do your research or you might end up buying a policy you don’t need and paying up extra money. Check out multiple disability insurance quotes with our experts, and choose one that you can afford.
Multiple factors affect the policy premium. Check these out:
- Age
- Health and medical history
- Occupation and associated risk levels
- Duration of the policy and coverage amount
Let our expert agent assist you in buying the most affordable plan. For the best assistance in Surrey, you can trust SafeInsure.
Claim Process and Settlement
While one always prays that they need not require filing a claim in the future, here is the process explained, making it easier for you in case the unexpected happens:
- Read the policy's fine print and gather all documents related to the claim, including hospital records, medical reports, proof of income, etc.
- Fill out the claim form and notify the insurer of the disability.
- Undergo medical examinations if required.
It is advised that you keep all the health-related documents safe; it will help expedite the process of settlement.
Remember, filing a claim and getting a settlement isn’t always easy. There might be disputes over the documentation or the definition of the disability.
When you going through a hard time, having an expert by your side, who handles the settlement side of things, is vital. At SafeInsure, we are your support.
Comparison With Other Insurance Products
You can also explore other insurance products that can work together to offer you added protection during uncertain times.
Disability Insurance Coverage Vs. Critical Illness Insurance
Disability coverage is a percentage of your income, say 60-70% or even higher, depending on the policy.
On the other hand, critical illness coverage is a one-time lump sum payment provided when you have a critical illness.
The two insurance policies can work together. For example, if you had a stroke and underwent surgery, it falls under a critical illness, and while you are unable to work due to recovery, you can get disability coverage.
Conclusion
Be it a temporary disability coverage or permanent one, you need it. Unexpected disabilities not only affect your body but also affect the future and dreams of your family, especially when you are the sole breadwinner of the family.
So, take care of your family and protect their future by investing in a disability insurance policy.
Frequently Asked Questions
Anyone who is self-employed, salaried, the primary breadwinner of the family, or has dependents needs disability insurance.
It includes chronic illnesses, physical injuries, mental health issues, neurological disorders, or anything else that renders you unable to work.
It covers expenses for temporary recovery, rehabilitation, partial disabilities, etc., for a few weeks to six months or more.
It covers permanent injuries, several mental and physical health issues, serious chronic illnesses, and other degenerative diseases until the age of retirement.
It depends entirely on the insurer and their requirements for the claim. If the papers are in order and the disability falls under the definition, it should take up to 15 days to receive benefits.
Yes, if you have an individual disability policy, then you can receive the benefits.
Yes, you can have both, as long as they don’t overlap the benefits. However, some policies require you to disclose the benefits you receive from government policies, only filling in the gap.
