VIDEO: Disability Insurance in Canada

Watch and learn how personal disability insurance works

Life Guard Insurance has produced this new video to help Canadians who might need personal disability insurance understand how it works. If you couldn’t work and your income stopped, could you meet your financial obligations like paying the mortgage, utilities and buying groceries. The risk that you might experience a period of long term disability during your life is 50%. And if you were on long term disability, the average time you would be off work is 2.9 years.

Most people who are self employed or working on contract do not have any disability coverage. Many other Canadians work with minimal coverage, like Workers Compensation coverage, or their employer does not offer disability benefits. You can’t afford to be without coverage.

Learn what elimination period, benefit period and benefit amount means when designing a disability insurance policy.

We hope you enjoy this 4 minute video if you are looking for disability insurance.

Transcript of Do You Need Disability Insurance

If you became injured or ill and couldn’t work for several weeks or even months, could you still meet your financial obligations?

 

Would you be able to make your car payments?

 

Would your mortgage be in jeopardy of default?

 

If this worries you, then you probably need to take a closer look at getting disability insurance.

 

Did you know that approximately half of all Canadians will experience a long term disability during their working years?

 

The younger you are, the more probable you are to have a disability that lasts longer than 90 days.

 

And if that happened, the average time you could expect to be unable to work is 2.9 years! That’s a long time to live without income.

 

Most people do not have enough liquid cash flow to pay their rent or mortgage, car payment and other expenses if they cannot work.

 

That’s where disability insurance comes in. It protects your income and cash flow, and pays living expenses if you are sick or injured and cannot work.

So do YOU need disability insurance?

If you’re self employed or a business owner you probably do need some.

 

If you work for a company that doesn’t have a group benefits plan that includes Disability Insurance, you need to protect your income. Disability Insurance is the way to do that.

 

There are three main things to look at when designing a disability insurance plan that is right for you.

 

First is the benefit period. If something happened, how many years would you like to be able to receive benefits? Plans typically let you choose 2 years, 5 years or right through to age 65.

 

Next is the elimination period or waiting period – how long you have to wait before your benefits start. You can choose 30, 60, 90 or 120 days before your benefits kick in.

 

The longer you are prepared to wait the lower the premiums are today.

 

Then there is the benefit amount.

 

The amount of insurance you can get is based on your taxable income. You can’t insure more than you make. The insurance company prescribes an amount of tax free income that is less than your current earned income. Usually about two thirds of your income.

 

You can also add several types of riders to your disability policy to make it unique and more valuable to you.

There are different types of Disability Insurance.

You can purchase an injury only plan. This is ideal for blue collar workers in high risk occupations where they can get hurt on or off the job. If you have a higher risk job, you would pay more in premiums than if you had a lower risk job, such as one in an office.

 

Injury and Sickness Disability insurance is much more comprehensive. It covers you 24 hours a day from anything that would keep you away from your job.

 

If you are a small business owner, and your business might fail if you were not there, you can get Business Overhead Expense insurance. It would pay expenses like rent and salaries, and has tax deductible premiums for the business.

 

You can also get Key Person Disability Buy/Sell insurance, designed to buy out a business partner who can no longer return to work because of an injury or illness.

 

Disability insurance is a complex insurance product with many things that affect the premium you pay.

 

One of our qualified insurance professional at Life Guard Insurance can answer your questions and help design the perfect disability insurance plan to protect your income. Call us today.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Do You Need Disability Insurance? would be very much appreciated.

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