Disability Insurance Plans
Get all the information you need about disability insurance before you purchase a plan
If you need coverage, we can provide you with helpful information and great rates. HealthRates.ca helps you find competitive rates for disability insurance.
It’s no secret that life often throws us curveballs, and as such, we’ve learned to expect the unexpected. Unfortunately, accidents do occur when we least expect them, and their effects can, unfortunately, impact our quality of life.
When an accident and resulting injuries leave you disabled, not only does it impact your life, it also affects your income. Disabilities can leave you on the mend and out of the office for an extended period, and that could leave you without money required for essentials.
There is, however, a solution to this problem, and it comes in the form of disability insurance.
Read on to learn more and get answers to some frequently asked questions about disability insurance.
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Table of Contents
What is disability insurance?
Disability insurance protects you from financial hardship by replacing part of your income in the chance that you are injured and are unable to work. Several situations could leave you disabled, such as accidents, injuries, mental health issues or severe illnesses.
If you end up with a disability, your top priority should be your health – not worrying about debt collectors. In some cases, disability insurance can also be used for pregnancy.
Should I get disability insurance?
The funds you receive from your disability insurance policy can help you to cover certain costs while you are unable to work. Furthermore, if you are the sole income earner in your family, and your disability keeps you away from work for a long time, the effects of the lost income will immediately be felt. Disability insurance becomes a necessity if you work in a labour-intensive industry where accidents and injuries are common.
What are the different types of disability insurance?
There are two types of disability insurance available on today’s market. They include:
Short Term Disability Insurance
This type of policy provides you with up to six months’ worth of coverage while you are unable to work. Some employers offer short-term disability insurance as part of their employee benefits packages. If that is the case, you must submit your claim through your plan. If not, be sure to speak with your employer’s HR department about the company’s policies for sick leave. As a rule, employers are not required to provide paid sick leave, but some may have different rules regarding this. If you employer does not provide short-term disability coverage, you may be eligible for employment insurance sickness benefits from the federal government.
Long Term Disability Insurance
If you are still unable to return to work after your short-term disability insurance, EI sickness benefits or paid sick leave time expire, long-term disability insurance will take effect. The coverage varies from one insurer to another, but most plans in Canada provide you with at least 60% of your income on average. Some plans provide coverage for up to two years, while others may continue your benefits if your disability permanently prevents you from returning to work. Be sure to speak with your provider to get further details about their coverage plan.
Where can I get disability insurance?
The disability insurance policies described above are all available from top insurance providers in Canada. If you’re looking for disability insurance coverage now, HealthRates.ca allows you to review multiple insurance products and compare rates from major insurers.
Click here to process your quick disability insurance quotes.
How much does disability insurance cost?
The cost for disability insurance is determined by a risk-to-reward ratio, which is how costs for other types of insurance policies are calculated. Your age, profession and annual income are also considered. Regardless of whether you require a short- or long-term disability plan, the cost is usually between 1 and 3% of your annual gross income.
Get Informed, Get Insured
There are lot of disability insurance policies and insurers to choose from in today’s market, and our goal is to help make your decision easier. We have networks to major insurance providers and would be glad to discuss your disability insurance options with you. For more information, please contact us today.