If an accident has temporarily or permanently kept you from working, you can receive a tax-free monthly benefit if you have disability insurance coverage. This plan helps pay your monthly expenses. You also have the freedom to personalize your disability insurance coverage by adding extra benefits at a cost.
How does disability insurance coverage work?
Now that we know what disability insurance coverage is let us understand how this insurance policy works. In the unfortunate event, you become disabled; you must file a disability claim. After the filing is complete, you have to wait for the claim to be approved. Once approved, there is a waiting period; the waiting period is the start date of the benefit, including the number of days from the date you became disabled. This waiting period can be anywhere from 30 days to a year. Your monthly benefit would begin after the waiting period has been achieved.
Types of disability insurance:
If you are suffering from an illness or injury, the coverage is provided for up to six months. Additionally, the waiting period is typically shorter than long-term disability.
Sometimes life does not go according to plan; a severe injury or illness can prevent you from working for a prolonged period or permanently. A long-term disability plan protects you and your loved ones financially.
Reasons to purchase disability insurance:
If your company provides disability insurance, you usually don’t pay for it. The amount that you receive is tax-free, as you have already paid taxes on it.
Disability insurance often comes with two types of coverage, regular coverage and occupation coverage. When you opt for occupation coverage, you are covered if you can no longer perform the job, you were doing when you got sick or injured. If you believe you can do any job for a regular occupation, you will not need much help with your bills.
Significant impact on your finances
Have you considered what would happen to you and your family if you became sick or had a workplace accident? This is where disability Insurance comes into the picture. This type of coverage can get you some amount to help you and your family cover expenses in the event of your inability to work. Many individuals do not understand what a disability insurance policy offers; before purchasing a disability insurance coverage, you must:
Are you the sole income earner for your family? Do your parents depend on your income? If the answer is yes, you need to purchase a disability insurance policy. The unpredictability of life is petrifying, as one unfortunate event can leave you and your loved ones financially unstable. If you cannot work due to a severe injury or illness, owning disability insurance can help pay for expenses like utilities, school tuition, mortgage, food, and car payments. This insurance plan replaces a portion of your income if you are unable to carry out your work. Back injuries, heart diseases, and cancer are the majority of long-term disability claims.
Contact our expert insurance advisors today!
Don`t take a chance on life and own a disability insurance coverage today. At Canadian LIC, our professional insurance advisors are experienced and have the patience to explain thoroughly why disability insurance is essential. To find out more details or to schedule a consultation, call us at 416 543 9000 today. We will be more than happy to address your queries.