Benefits Of Disability Insurance In Toronto

Getting disability insurance in Toronto is a self-care safeguard that everybody should have. The world is full of uncertainty. While you should try your best to be as safe as possible, investing in securing an unknown future is also important. The fact that the world is so uncertain isn’t something you should worry about. Instead, you should be prepared to fend for yourself and family in the face of any illness that may cause you to stop working.

According to public statistics, every 1 of 4 workers suffers from one disability or the other, at least once, during their working career. Although the nature of the job and other health issues are the prevalent causative factors, there are other reasons why a disability may arise.

Getting disability insurance in Toronto maybe all the insulation you need in the event of a serious condition that may affect your work. Are you wondering about getting disability insurance in Toronto? In this article, we will tell you why bearing the cost of disability insurance is a plus for you.

 

What Is Disability Insurance?

Disability insurance is a type of coverage that covers the provision of funds to any worker (registered) in the advent of an inability to perform work-related duties due to an illness. Essentially, it is a life-line for the uncertainties that may put a person out of work. 

Disability insurance is common-place in Toronto and other parts of Canada. It is designed to provide a steady income for workers who can no longer earn money as a result of a disability.

 

What Disabilities Does The Insurance Cover?

It is almost impossible to get an exact list of all of the disabilities covered under this insurance type. However, the important thing to note is that everybody qualifies for disability insurance. Any injury you get on the job, or that prevents you from continuing your job is covered by insurance. 

Disability insurance is a necessity in Toronto, regardless of the needs and intensity of your job. Whether you clean glasses for high-rise buildings or you tend to those that want to buy cars, you need this insurance. 

However, there is no disputing the fact that some jobs hold a higher level of risk compared to others. For these kinds of employment situations, disability insurance is a must. For instance, if you are working with heavy machinery or at the mine, you don’t even need to ask, “do I need disability insurance? The answer is a resounding “yes.” 

The only difference is in the cost of disability insurance. Risky jobs like that of firefighters and police officers require higher monthly premiums compared to a telemarketer. Also, different insurance companies have different rules for paying out disability insurance claims. One thing is, however, standard with all companies offering disability insurance in Toronto — the coverage is not a get-rich scheme. Just like any other insurance policy, the company will carry out a thorough investigation in the advent of any health issue. 

Typically, disability insurance only serves as a replacement for a particular percentage of your income. This percentage is dependent on the extent of your coverage and the cost of disability insurance that you incurred. Also, this insurance policy does not cover pregnancy, except complications that warrant you to stay out of work. However, for this clause to take effect, there needs to be a recommendation from your doctor. 

 

Why You Need Disability Insurance

Most people are skeptical about the idea of taking out disability insurance in Toronto. For some, they already have life insurance and don’t feel like they need the extra coverage. However, these two insurance policies differ from one another. Therefore, they offer different advantages for you.

There are several reasons why you need to get disability insurance. These reasons include:

You get it when you need it – alive

One significant difference between life insurance and disability insurance is the fact that you don’t have to be dead to cause a trigger of the insurance benefit. You can only trigger the benefits of your life insurance policies when you die. 

With disability insurance, you get to pay your bills and feed when you are unable to go into work. This means that even if you can’t work due to a disability, you will always have a portion of your income coming in.

It can fit right into your financial plan

Of course, this insurance policy isn’t going to be a replacement for your monthly or annual income. It only covers a percentage of it. Automatically, this means that the cost of disability insurance is not as high as you think it is. The cost of disability insurance is affordable and the coverage is one that is easy to set up.

Once any disability forces you to miss out on work, it will kick right in until you recover. As long as you understand all of the terms of your coverage, you are good to go.

It allows you to focus on recovery

To get back to work as soon as possible, you have to focus on your recovery. This is one of the major advantages of having disability insurance coverage in Toronto.

There is no need for you to worry or spend your time looking for the money to foot your medical and lifestyle bills. Instead, you can focus on your recovery and getting back on your feet as quickly as possible.

Disability insurance benefit is tax-free

There is no need for you to worry about taking a cut of your benefit for tax. You will get your payments in full as long as you have kept up with your premium payments.

This policy stands even when you change jobs

If you change jobs, it won’t have any effect on your disability insurance. It will remain as you have agreed with your insurance provider. Therefore, if you are the type that likes to take on different challenges, you don’t have to worry about losing your insurance. 

There is also no need for you to worry about suddenly paying higher premiums. Your insurance remains solid irrespective of how many times you change your job. However, it is possible that some adjustments may have to be made if you take on a role with more risk.

 

What Type Of Disability Insurance Should You Get? 

Disability insurance can exist as both short-term and long-term insurance. Both types of coverage will replace a percentage of your salary in the event of any illness. However, there are some differences which you need to study to know which type of disability insurance you should get.

  • How much it covers: Short term insurance covers about 60 – 70% of your salary, while long-term coverage usually accounts for about 40 – 60%.

  • How long it lasts: For the short term insurance coverage, it depends on the company offering it. Typically, it usually exists for 3 – 6 months. Long term insurance lasts up to about five years or more. 

  • The cost: Typically, short term insurance will cost you about 1 – 3% of your annual income. Long-term coverage will also cost you the same. 

  • The timeframe for the first payout: Once the disability is confirmed, short-term coverages usually pays out in two weeks. For long-term coverage, it will take about 3 – 6 months for your payment to start coming in.

 

Conclusion

For just about 1-3% of your annual income, you will be able to pay for disability insurance in Toronto. This is a decision that you should make to ensure your future. The benefits of disability insurance far outweigh the cost of this premium.

Are you in search of disability insurance in Toronto? Do you need reliable coverage from an excellent provider of insurance premiums? We are an insurance company with a reputation for excellence. Speak to our experts today!

Related article: Cost of Health Insurance in Canada

Leave Comment