Disability Insurance

According to the Canadian Life and Health Insurance Association, one out of three Canadians will become disabled before their 65th birthday for 90 days or more. Health care can cover most medical bills, but it won't replace the wages you'll lose. Thankfully, many employers offer group benefits that includes disability coverage.

This insurance will cover between 60 and 85% of your wages. Given that your disability can last for several weeks or months, if you don't have disability coverage, you should really consider getting some.

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There are many advantages to purchasing your own disability insurance. The disability coverage that an employer negotiates for his employees might not be suited to your needs, and it often kicks in only if you cannot work at all (full disability). Partial disabilities can prevent you from working at your fullest or an entire day, and these can be covered on an individual policy.

There are three types of policies on the market:

• Non cancellable - guarantees your renewal at the same rate
• Guaranteed renewal  - guarantees your renewal but the insurer may increase premiums for certain categories of individuals
• Commercial - the most affordable option. It doesn't guarantee your rates or your renewal though

How to make the most out of your disability insurance

• While you can get multiple disability insurance policies, you will never be able to get more income than what you were already making. 
• The amount you need should at least cover your current bills and debt payments, and provide enough money for additional costs related to your disability.
• The longer the waiting period before your coverage comes into effect, the lower your rate.

These are just a few things to look out for. Call a BrokerTeam today to get all of our recommendations.